Marsh Receives Dubai Captive License

Insurance broker Marsh said it has received the first license to provide captive insurance management in Dubai.

Marsh is a subsidiary of New York-based service firm Marsh & McLennan Companies.

The operation, named Marsh Management Services (Dubai) Limited, was authorized by the Dubai Financial Services Authority and will offer captive insurance management services from within the Dubai International Financial Center (DIFC), Marsh 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,” said Ronny Vellekoop, head of office, Marsh Management Services (Dubai) in a statement.

“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,” Mr. Vellekoop said.

Abdulla Al Awar, managing director of the DIFC Authority, called the establishment of Marsh's office “testimony to DIFC's potential to be a hub for captive insurance both regionally and globally.” He added that as the DIFC develops as a global financial centre, captive insurance is one of the key sectors it is seeking to develop.

Michael Cormier, managing director, Marsh global captive solutions practice, said the DIFC has the potential to establish itself as an international captive insurance domicile.