Read Full Magazine Here. The global reinsurance market size was valued at USD 292686.91 million in 2022 and is expected to expand at a CAGR of 3.07%, reaching USD 350848.75 million by 2028.
Reinsurance, also known as insurance for insurers or stop-loss insurance, is the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.
It is important to know that digitalization has not only made it easier for insurance and reinsurance companies to store and manage customer data, but has also allowed them to provide more personalized service.
Digitalization is no longer just propelling the growth of the insurance and reinsurance industry; it’s also transforming the entire value chain. Digitalization is already delivering tangible benefits across the insurance value chain. For example, technology brings precision and detailed data.
Saying the above, it is important to know more about Kuwait Re and its highly reputed Chief Executive manager – Mohammad Al Tabtabaei. Kuwait Re is a leading provider of reinsurance services, serving insurance companies worldwide to the highest standards by providing reliable, tailored risk transfer solutions over a variety of industries. Operating within an environment of fairness, transparency and reliability, we work alongside our clients to ensure that risk is not only controlled, but also used as an integral tool to guarantee growth and expansion. With offices in both Kuwait and Malaysia, Kuwait Re aims to become a reinsurer of preference.
In 1972, Kuwait Re was founded as the first reinsurer in the Gulf. At the time, the founders of Kuwait Re consisted of four insurers, six banks and two semi-government investment companies in Kuwait.
In 2000, through an injection of additional capital, renowned global reinsurer Trans Re – became a 40% shareholder and a strategic partner
In 2004, Kuwait Re was listed on the Kuwait Stock Exchange.
In 2006, the company’s Far East Regional Office (FERO), was established in Malaysia to service our clients in the Asia pacific region.
In 2015, Al Ahleia Insurance Company, a major listed Kuwaiti insurance company and one of the founding insurers ownership in Kuwait Re to 91.7%.
Currently, Kuwait Re offers its customers a wide range of reinsurance solutions, aiming to become a reinsurer of preference.
It’s been amazing to see how beautifully Mohammad Al Tabtabaei’s balancing his achievements and staying true to his industry.
Experience: Mohammad Al Tabtabaei, Chief Operating Officer at Kuwait Reinsurance Co., has long and rich experience in the reinsurance industry.
Education: He received an undergraduate degree from the University of Portland.
Certificates and licenses: Mohammad Al Tabtabaei has various certificates and licenses from conferences and seminars
Languages: English & Arabic
BL: How digital developments will transform the reinsurance industry?
Mohammad Al Tabtabaei: The digital developments have influenced our company in a positive way in terms of acquiring the right data and enhancing the quality of data output that help us achieve our goals through the right analysis. Also, in the area of communication, we can observe the positive change in bringing people and thoughts in a rather more practical way.
BL: Growth is hard for reinsurance companies to achieve especially with the tough natural hazards. The more rules you master to create growth for your organization, the better. How do you achieve profit and growth?
Mohammad Al Tabtabaei: Growth in our industry is a double-edged sword. Growth is not necessarily associated with profit in our industry, hence, there must be a balance between both. In that sense, growth expectations must be realistic, and shall always consider a reasonable profitability end of the day.
BL: What is the best strategy to maximize profit during 2023?
Mohammad Al Tabtabaei: Maximizing profit is a strategy for Kuwait Re not only for 2023 but throughout its history. That is only achievable by prudent underwriting, reasonable return on investment, and cost management. The diversified lines of businesses and geography are also key to growth and profitability.
BL: The earthquake that has devastated Turkey and Syria could cause economic losses exceeding $5 billion, how does it impact reinsurers and Kuwait Re?
Mohammad Al Tabtabaei: no doubt that the global reinsurance industry is impacted by the loss in Turkey, and we are no exception since we have some involvement in the Turkish market. As far as the extent of the that loss, the estimates are in the initial stages at the current time. Needless to say, that we have the right reinsurance protection on our portfolio and we are able to fulfil our financial obligations as needed.
BL: Who are the major competitors and what is their strategy?
Mohammad Al Tabtabaei: I am not in a position to comment on our competitors and their strategies, I leave it for them to do so.
BL: How do you comment on the Arab and global reinsurance industries and what are the challenges?
Mohammad Al Tabtabaei: Current economic conditions are the most important challenges we all face: inflation namely is main issue everyone in the supply chain of insurance faces, hence, prices shall be adjusted accordingly, and we all need to be prepared for that.
BL: Prices rose sharply in the January 2023 renewals in response to losses due to the war, high inflation and increasing natural catastrophe claims, how did this impact the performance of Kuwait?
Mohammad Al Tabtabaei: it will certainly have an impact, and for that reason we are adjusting our prices and working on a strategy to enhance our portfolio in order to optimise our return on the right exposure.
BL: What are the recent updates of Kuwait Re? What are the updates on Kuwait Re?
Mohammad Al Tabtabaei: Kuwait Re’s consistent performance and 2022 results demonstrate the success of the realistic strategy we have adopted since 2017. Also, other than the decade old rating of A- from AM Best, Kuwait Re was also awarded an A- rating by S&P.
BL: What are your comments on the impact of Covid-19 on the relationship between insurers and reinsurers in terms of price and coverage?
Mohammad Al Tabtabaei: Following Covid, inflation is felt and recorded in most of the economic activities and likewise insurance, hence insurance prices were enhanced in many areas. In the same time, insurance policies started to exclude pandemics coverage explicitly and would include sublimits if the coverage is included with charging additional premium.
BL: Reinsurers are to face a complicated and challenging 2023 with increasing uncertainty, what is your view?
Mohammed Al Tabtabaei: Certainly, there will be serious challenges in 2023 and the main one is the increasing in retro cost, in addition to the potential shortages of capacities available to write in some areas. The shift in appetite will be a challenge for some and opportunity for others.
