Thursday, 02 December 2021 05:03 GMT

Insurance industry able to sustain USD123B shortage in Arabian countries

(MENAFN) Insurance and reinsurance firms have the capability to aid in sustaining the monetary gap of USD123 billion in small and medium sized enterprises in the Arab world, which is an industry considered to be the main foundation of the economy and the one which is set to be an asset class.

Enterprises of the mentioned category believe it is hard to lock funding from customary banks because they find it troubling to comprehend their dangers and the assessment method.

Olivier Placca, co-founder of French credit insurance platform Tinubu Square reported, insurers are the qualified ones to speak up about this subject.

On Wednesday, Nov. 24 Mr Placca noted at the FinTech Abu Dhabi meeting, “Banks have regulatory constraints – Basel Framework rules, for instance – preventing them from mobilising the capacity that is required in the SME market. The capacity of insurers and reinsurers is at the highest; a good thing to do is to transfer part of this risk from lenders to insurers.”

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