Dubai: While it deepens its exposure covering risk in big-ticket construction and real estate projects, France’s insurance giant AXA is looking at possibilities in “general liability” lines.
“Apart from large risks and following our recent strategic alliance with Green Crescent Insurance Company as well as our nomination as one of seven DHA (Dubai Health Authority) Health Preferred Insurers, we look forward to further accelerate the growth of our health portfolio as well as developing our life and savings offer in the UAE,” said Jerome Droesch, CEO of AXA Gulf and Middle East.
Within its large risks portfolio, AXA is also active in marine offerings apart from property (up to $270 million maximum possible loss (MPL)) and construction (up to $200 million MPL). Its continuing alliance with group entity, AXA Corporate Solution, adds to the heft in providing insurance cover for major projects.
The two AXA entities started with marine and construction, to which property-related risks have been extended. Property is the “next step is to deploy our liability offer for all GCC countries”, according to AXA. The gross premium volume has recorded double-digit growth for each of the five years in the large corporate sector. (The insurer does not participate in oil and gas spcific risks.)
“Since the beginning of the partnership, we have seen double digit growth which shows that the strategic move with ACS was the right one and was aligned to the market needs,” said Droesch.
Infrastructure
Certainly, reinsurers have been allocating higher and substantial capacity to insurers in offering cover for the region’s slate of mega projects. According to market sources, there is enough capacity around to take on projects emerging off the pipeline in the Gulf markets. Also, because of the extra capacity, it is unlikely that insurance premiums on big projects will harden.
According to Philippe Rocard, CEO of AXA Corporate Solutions, “There is a great deal of investment from both the government and private sector. The major investments we currently see are focused on improvement and extension of transportation infrastructures with the construction of new highways, railways, airports, metros in all the GCC countries.
“Another activity sector we see growing is power generation, including renewables (solar mainly). We believe investments in large businesses and infrastructures projects will continue to accelerate and AXA’s local and global presence will leave us well placed.
“We will focus on retaining and developing our existing portfolio. For example, we have been able to cover piracy risks for our clients showing ability to accompany them.”
