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The impact of the financial crisis does not appear to have dampened the appetite for reinsurance in the Middle East, with non-life premium expected to grow by some 10 percent in 2011 to $13.7bn, according to the findings of the latest GCC Reinsurance Barometer.

Unveiled at the Monte Carlo Rendez-Vous by the Qatar Financial Centre Authority (QFCA), the bi-annual survey also indicated that non-life reinsurance premium in the region is expected to reach $15bn in 2012.

Further findings indicated that 67 percent of those interviewed expected reinsurance exposure to grow at a faster pace than GCC countries' GDP, while 71 percent of respondents expected overall profitability to remain stable or even improve slightly - despite ferocious competition.

Only 8 percent of those surveyed expected reinsurance rates in the region to soften in 2012, further strengthening the wider assessment of this year's Rendez-Vous that there will be no return to the soft market in the near future.

One aspect of coverage in the Middle East that is expected to change further as programmes come up for renewal is in relation to cession levels, with higher retention levels - a market dynamic which Inside FAC reports upon in its latest issue - clearly a concern in the Middle East as well.

However the prospect for facultative reinsurance remains bright given the continuing level of investment in large scale construction and infrastructure projects which is driving much economic growth.

The QFCA estimates that over the next 10 years some $130bn will be spent on infrastructure projects in Qatar alone, including a new rail network, metro system, and new airport.

Facultative (re)insurance premiums as percentage of the overall market share are therefore expected to remain relatively high, with a third share of the total premium pie.