But not everyone agrees with him. Magne Seljeflot, the chairman of the leading global risk management services provider, Aon, was recently quoted as saying that captive insurance firms in the energy sector are not a threat to local insurers. “Captive insurance firms have existed since [the] 1920s and their role is to complement and support the market and not to compete with it,” he told Doha-based Gulf Times.

According to Seljeflot the notion that captive insurance companies could handle risks in the energy sector alone is wrong. But regardless of whether captive insurance poses a threat to traditional insurance or not, financial centers such as Dubai may have to reassess their strategy if they hope to become the Arabian Bermuda.

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