Dubai, 14 July 2008: Marsh, the world's leading insurance broker and risk adviser, today announced that it has been awarded the first licence to provide captive insurance management in Dubai.
Operating as Marsh Management Services (Dubai) Limited, the company has been authorised by the Dubai Financial Services Authority (DFSA) and will offer captive insurance management services from within the Dubai International Financial Centre (DIFC). Marsh Management Services (Dubai) Limited is the first company to be registered as an insurance manager by the Dubai Financial Services Authority (DFSA).
Abdulla Al Awar, Managing Director of the DIFC Authority, said: "The establishment of Marsh's office is testimony to DIFC's potential to be a hub for captive insurance both regionally and globally. DIFC is keen to provide the infrastructure, regulatory environment and support necessary for leading global insurance companies like Marsh to offer innovative solutions for their clients in the region.
"As DIFC seeks to develop further as a global financial centre, captive insurance is one of the key sectors that we are looking to develop. With the rapid development of the economy and the financial industry, the growth potential for captive insurance in the region is very promising."
Commenting on the announcement, Ronny Vellekoop, Head of Office, Marsh Management Services (Dubai) Limited said: "High levels of economic growth in the Gulf region are not only providing many opportunities for companies based here but also increasing the number of corporate risks they face. As risk management becomes more sophisticated, local companies want more options when making decisions about financing that risk. While captive insurance is so-far little used in the region, the history of innovation in the Dubai market suggests that its use will quickly increase."
Michael Cormier, Managing Director, Marsh Global Captive Solutions Practice, said: "DIFC has the potential to establish itself as an international captive insurance domicile and Marsh is pleased to be part of this exciting development. Marsh Management Services is present in every major captive domicile in the world and in order for us to continue to identify and develop solutions for our growing client-base, it is important that we continue to develop our position in the Middle East. The DIFC offers us a professional and modern business environment conductive to our ambitious expansion plans."
A captive insurance company is a limited purpose insurance company established with the specific objective of financing risks emanating from its parent group or groups, usually a non-insurance industry corporation.
Among the several reasons why an international group might choose to establish an in-house insurance subsidiary is the desire to centralise the corporate insurance function, improve control and continuity of the corporate risk management process and gain direct access to the lower cost international reinsurance market.
The types of risk that a captive can underwrite for the parent include property damage, public and products liability, professional indemnity, employee benefits, employers liability, motor and medical aid expenses.
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About Marsh
Marsh, the world's leading insurance broker and risk advisor, has 26,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with more than 55,000 employees and annual revenue exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. MMC's stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC's Web Site is www.mmc.com. Marsh's Web site is www.marsh.com.
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About the DIFC:
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
In just three years, over 650 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
Contacts:
Jason Groves
020 7357 1455
jason.groves@marsh.com
Eileen Mercer
07990 802 830
eileen.mercer@marsh.com
Media enquiries:
Amira Abdulla
PR Manager
Dubai International Financial Centre
Tel: +971 4 362 2433
E-mail: amira.abdulla@difc.ae
Shaima Al Zarouni
Assistant PR Manager
Dubai International Financial Centre
Tel: +971 4 362 2432
E-mail: shaima.alzarouni@difc.ae
Iman Ahmad
Regional Media Relations Manager
Dubai International Financial Centre
Tel: +971 4 362 2685
Email: iman.ahmad@difc.ae
© Press Release 2008
