The insurance arm of Warren Buffett’s global insurance and reinsurance company, Berkshire Hathaway Specialty Insurance Company (BHSI), is sizing up an expansion of products on offer from its Dubai office, as confidence continues on the growth of the surrounding regions, according to a company official.
The company announced earlier this year that it had received its license from the Dubai Financial Services Authority to establish an office in the Dubai International Financial Centre (DIFC), while also announcing the appointment of Alessandro Cerase as Senior Executive Officer (SEO).
Upon the announcement Marc Breuil, President, BHSI, Asia Middle East, said that building a strong foundation of servicing capabilities and local knowledge and expertise is critical to BHSI’s long term plans in the Middle East.
BHSI offers specialty and commercial insurance and reinsurance products with a focus on construction, energy, property, marine, casualty and executive and professional segments.
“We are already reviewing additional products. We might also offer group personal accident,” said Cerase.
“Right now we are not considering entering the retail business but that does not mean we will not review our position if regulations change over the years. We might decide to expand in the local environment.”
In 2017, the UAE’s gross written premiums rose 12% year-on-year to $12.1 billion, higher than 2016’s 8.3% expansion, according to figures from the Insurance Authority.
“As we expanded our geographical footprint, Dubai was a natural fit for the Middle East region, considering the growth this part of the world has experienced in the last few years,” added Cerase.
“The region has benefited over the years from investment that has been made in infrastructure and energy including power. The DIFC has a well-established and independent common law jurisdiction system that follows global best practices which is a big plus for us.”
Cerase added that, Despite this growth, challenges to the region’s insurance industry linger, including the lack of insolvency laws in some MENA countries and underestimation of disasters such as floods in some countries.
