New insurance co licence granted at DIFC
Global insurance services provider Coface has taken an additional office in the Dubai International Finance Centre (DIFC) following a restructure at the firm as it bids to grow its Middle Eastern operation.
Under its newly-formed Coface Credit Insurance company it will provide insurance management services to support its insurance partners in the region, offering coverage to protect trade receivables from the risk of non-payment and reduce costs associated with working capital management, the company said in a statement.
Massimo Falcioni, head of Middle East Countries at Coface, said: “The decision to establish a DIFC-licensed entity that offers insurance management and intermediation services reflects Coface’s long-term commitment to enhancing its presence in the Middle East.
“Well-established and diversified export and re-export trade ties between the UAE and the rest of the Middle East are crucial to the future of this region. The role of Coface in the region has become significant accordingly.”
‘Increase of insolvencies and payment defaults’
Coface said the increase in insolvencies and payment defaults has resulted in a rising need for protection for SMEs as well as large corporate firms through credit insurance solutions, particularly in the Middle East due to “complex market circumstances” and the recent plunge in global oil prices.
“The insurance sector is key to enabling the growth of the world’s fastest region, by managing risk and encouraging investment in key expanding sectors,” said Arif Amiri, chief Executive of DIFC Authority.
“We are delighted to see Coface obtain another licence and we welcome their second office in DIFC in recognition of the fact that the region’s insurance sector is set to grow by double digits until 2020 and that DIFC is the financial hub for the Middle East, Africa and South Asian region, connecting the region’s markets with the economies of Europe, Asia and the Americas.”
In its 70-year history, The Coface Group, has built its organisation up to more than 4,500 employees in 67 countries, securing the trade receivables of its 40,000 client companies in more than 200 countries, advising companies at every stage of their business life cycle to anticipate and mitigate risks.