Aon makes ‘timely’ entry into key reinsurance market to tap new opportunities
Global broker Aon has launched a new reinsurance unit in Saudi Arabia to ensure a “timely” entry into a key market that is opening up to the world with a wide range of opportunities, including risk analysis and mitigation for the global insurance sector.
The Saudi insurance market is undergoing structural changes through more focused regulations and operational reforms, said Aon. The Kingdom’s “unique, transformative economic and social reform” framework Vision 2030 is designed to diversify Saudi Arabia’s economy away from its dependence on oil and drive privatisation to pave the way for increased foreign investments.
According to a SAMA report cited by Aon, Saudi insurance premiums grew by 2.3 percent in 2020, with total written premiums reaching SR38.78 billion.
Aon’s local reinsurance unit, Aon Reinsurance Brokers Saudi Arabia (ARBS), aims to offer “reinsurance expertise, innovative solutions and best-in-class service to regional clients”. It has commenced operations having received a reinsurance broking licence from the Saudi Central Bank (SAMA).
The new unit will be led by Mohammad Al Marhoon, managing director of Aon’s Reinsurance Solutions Saudi.
Amr Sartawi, chief executive officer of Aon’s Reinsurance Solutions Middle East, North Africa and Turkey, said: “In a growing insurance market that currently generates approximately $10.3 billion in premiums, we have the local presence, global access and extensive capabilities to position us to provide the world-class service that clients would expect from their broker of choice, helping them to build a resilient workforce and reduce the volatility of their businesses.”
Al Marhoon added: “With new opportunities arising in this key sector, our timely entrance into the Saudi reinsurance market will provide new impetus along with an inclusive insight. The establishment of our local reinsurance unit progresses Reinsurance Solutions’ global strategy in the region and aligns to the Kingdom’s Vision 2030. It will also offer us the opportunity to train Saudi talent who will specialize in reinsurance.”
