Read Full Magazine Here. The present situation of reinsurers is marked by impressive shareholder returns but also an uncertain future.
Over the past five and ten years, reinsurers have outperformed the rest of the insurance industry, with annual total shareholder returns (TSR) averaging 10% and 12.2%, respectively. This success has been driven by companies’ use of cash flow to sustain high dividends and repurchase shares. However, the convergence of geopolitical and macroeconomic shocks, such as war in Europe, fractured energy markets, high inflation, interest rate hikes, and depleted capital, has introduced significant volatility into the market. The industry has entered a sustained hard market for property catastrophe rates, but it remains uncertain whether current “hard” catastrophe rates are truly sufficient for sustained profitability. Going forward, operating performance, rather than cash flow, is likely to drive reinsurers’ shareholder returns.
In the Middle East, reinsurers have seen a positive turnaround with strong return on equity as a combination of improvement in underwriting results and high investment income. Despite competition and abundant capacity, reinsurance costs are poised to maintain their upward trend in 2024. The increase in retrocession rates imposed by the London market and the industry giants is pushing local reinsurers to respect a minimum rate discipline. Reinsurers in the Middle East have enjoyed favorable renewal conditions in recent years due to global upward pricing trends, high inflation after the Covid years, and new business opportunities. Despite the challenges facing the region’s reinsurers, the Middle East offers solid long-term growth potential.
Saying the above, it is important to add that SAYA Reinsurance Brokers LTD, based on the deep experience that exceeds twelve years for each member of the founding team. Saya Re stands on solid grounds of scientific knowledge and hands-on experience. It sets an eye on a clear goal that defines its day-to-day operations and the long-term vision: to smoothen the relationship between our clients and the insurance companies.
Its team guide the clients to find the right insurance plans that perfectly match their needs and help them to get their rightful benefits. Saya Re aims to provide an exceptional customer-centric experience that turns its clients into insurance advocates and eventually drives better-educated customers to insurance companies.
Maroun Al Rassi, Managing Partner & CEO of SAYA Reinsurance Brokers LTD, the Reinsurance Broking arm of ELAM Insurance Group, boasts an impressive 12-year tenure in Insurance & Reinsurance Broking.
Armed with a Master’s Degree in Science of Insurance and Risk Management from Saint Joseph University (USJ), Maroun excels in French, English, Arabic, and Spanish.
Notably, he has achieved success in placing major and intricate accounts, showcasing his adept navigation of reinsurance complexities.
Maroun has demonstrated his proficiency in handling complex accounts, showcasing his adept navigation of reinsurance complexities. His leadership is a valuable asset, guiding the industry with strategic acumen and a proven track record of accomplishment, Management and Strategic Planning.
Without a doubt, Maroun Al Rassi possesses a wealth of knowledge, skills, and expertise in his field, which will undoubtedly keep the flag of SAYA Re flying high.
As the recognition of the customer’s role in service creation and delivery grows, there is an increased emphasis on building customer-centric organizations. In this context, digital technologies play a key role, especially at SAYA RE.
Recently, Maroun Al Rassi, Managing Partner/CEO at SAYA Re sat down with BUSINESS LIFE reporter to tell him how he’s trying to make a difference in the reinsurance market. With a modern take on insurance, the company’s MD and CEO reveals his plans, strategies and views on the current insurance and reinsurance situation amidst the existing geopolitical environment.
BL: Maroun, could you share the latest updates on SAYA Re, specifically its growth?
Maroun Al Rassi: I’m pleased to share that SAYA Re is experiencing notable expansion across key metrics and our premium income is increasing, reflecting market demand and strategic underwriting practices.
We’ve also expanded our market presence into new geographic regions, enhancing our global footprint and diversifying our risk portfolio. This strategic expansion has been supported by investments in advanced technology and data analytics, empowering us to make data-driven decisions and improve operational efficiency.
Overall, SAYA Re remains committed to sustainable growth, innovation, and delivering value to our clients and stakeholders. We are excited about the opportunities ahead and confident in our ability to maintain our growth trajectory in the dynamic reinsurance market.
BL: How does SAYA RE distinguish itself from other reinsurance brokers in the MENA region?
Maroun Al Rassi: When addressing how SAYA Re distinguishes itself from other reinsurance brokers in the MENA (Middle East and North Africa) region, it’s important to highlight unique strengths and competitive advantages. Here’s a response that captures SAYA Re’s distinguishing factors:
SAYA Re stands out among other reinsurance brokers in the MENA region through several key differentiators that reflect our commitment to excellence and client-centric approach.
1. Specialized Expertise: SAYA Re boasts a team of highly experienced reinsurance professionals with deep knowledge and expertise in the MENA market. Our specialized understanding of regional risks, regulatory environments, and market dynamics allows us to offer tailored solutions that meet our clients’ specific needs.
2. Innovative Solutions: We differentiate ourselves by offering innovative reinsurance solutions that address evolving industry challenges and opportunities. Whether it’s developing bespoke risk transfer products or leveraging advanced data analytics for risk assessment, SAYA Re is at the forefront of driving innovation in the reinsurance sector.
3. Strong Partnerships: We prioritize building long-term partnerships based on trust, transparency, and reliability. Our collaborative approach ensures that we work closely with clients to understand their risk profiles, develop customized solutions, and provide ongoing support to help them achieve their business objectives.
4. Global Reach, Local Presence: While we have a global reach and access to international markets, SAYA Re maintains a strong local presence in the MENA region. This dual advantage allows us to combine global expertise with on-the-ground insights, delivering comprehensive reinsurance solutions that align with regional requirements and preferences.
5. Focus on Sustainability: SAYA Re is committed to sustainable practices across our operations and risk management strategies. We integrate environmental, social, and governance (ESG) considerations into our decision-making processes, ensuring responsible risk management and long-term value creation for our clients and stakeholders.
Overall, SAYA Re’s unique blend of expertise, innovation, strong partnerships, regional insights, and sustainability focus sets us apart as a trusted and preferred reinsurance partner in the MENA region.
BL: You have a grand vision to transform the general perception of insurance services, how successful have you been in implementing this vision?
Maroun Al Rassi: Transforming the general perception of insurance services has been a cornerstone of our vision at SAYA Re, and we have made significant strides in implementing this ambitious goal.
1. Enhancing Customer Experience: We have prioritized enhancing the overall customer experience by streamlining processes, leveraging digital platforms for seamless interactions, and providing personalized solutions. Our efforts have resulted in higher satisfaction rates and strengthened relationships with our clients.
2. Educational Initiatives: Recognizing the importance of awareness and understanding in shaping perceptions, SAYA Re has invested in educational initiatives. We conduct workshops, webinars, and outreach programs to demystify insurance concepts, promote financial literacy, and empower clients to make informed decisions.
3. Innovative Product Offerings: We have introduced innovative insurance products that align with evolving customer needs and market trends. By offering flexible coverage options, incorporating technology-driven solutions, and embracing sustainable practices, SAYA Re has differentiated itself as a forward-thinking insurance provider.
4. Community Engagement: Our commitment to social responsibility extends beyond business operations. SAYA Re actively engages with communities through CSR (Corporate Social Responsibility) initiatives, promoting inclusivity, and contributing to societal well-being. These efforts resonate positively with stakeholders and contribute to a more favorable perception of our industry.
While we have made notable progress in transforming the perception of insurance services, we recognize that it is an ongoing journey. We continue to listen to feedback, innovate, and adapt to changing dynamics to further align with our vision. Our dedication to transparency, integrity, and customer-centricity remains unwavering as we strive for continued success in reshaping the narrative around insurance services.
BL: Are there any plans in the pipeline to attract international partners?
Maroun Al Rassi: At SAYA Re, we recognize the value of strategic partnerships in driving growth and expanding our global footprint. As part of our forward-looking strategy, we do have plans in the pipeline to attract international partners and foster collaborative relationships.
1. Market Expansion: One of our key priorities is to broaden our reach beyond domestic markets and establish a stronger presence in international markets. We are actively exploring opportunities to collaborate with reputable reinsurance companies, brokers, and industry stakeholders across regions.
2. Joint Ventures and Alliances: We are open to exploring joint ventures, alliances, and strategic alliances with like-minded organizations that share our vision, values, and commitment to excellence. These collaborations can facilitate knowledge sharing, resource pooling, and mutual growth opportunities.
3. Innovative Solutions: Our focus on innovation extends to partnership strategies as well. We aim to develop innovative reinsurance solutions in collaboration with international partners, leveraging their expertise, market insights, and technological capabilities to create value-added offerings for our clients.
4. Mutual Benefits: Central to our approach is ensuring mutually beneficial partnerships. We seek to create win-win scenarios where both parties can capitalize on synergies, access new markets, mitigate risks effectively, and enhance competitiveness in the global reinsurance landscape.
5. Transparent Communication: Building trust through transparent communication is paramount in attracting international partners. We are committed to fostering open dialogue, sharing our strategic vision, and aligning expectations to forge enduring and fruitful partnerships.
While I cannot disclose specific details at this stage, rest assured that our efforts to attract international partners are well underway, guided by a strategic roadmap and a commitment to driving sustainable growth and value creation.
BL: What challenges are you currently facing?
Maroun Al Rassi: Actually, the challenges we are facing now is the ongoing war in the region.
