Adnoc and AI reinsurance platform RIQ sign $500m agreement

Move part of Abu Dhabi’s broader ambition to establish itself as a global reinsurance innovation hub

RIQ will work with Adnoc to structure coverage across complex climate-related and specialty risk classes. Antonie Robertson/The National

Abu Dhabi energy company Adnoc has signed an agreement with AI reinsurance platform RIQ targeting an allocation of over $500 million in risk coverage within the coming decade, amid plans to boost the UAE capital as a global hub for the sector.

RIQ was launched earlier in May this year by Abu Dhabi conglomerate IHC in partnership with the world's biggest asset manager BlackRock and alternative investment management company Lunate as a $1 billion reinsurance company. It will be based in ADGM and will offer a full suite of reinsurance solutions.

Under the agreement, RIQ will work with Adnoc to structure "capital-efficient coverage across complex operational, climate-related, and specialty risk classes", the companies said in a joint statement on Wednesday.

The platform will use advanced data modelling, AI-augmented underwriting, and deep analytics.

“This partnership will enhance Adnoc’s operational resilience by tailoring reinsurance solutions to evolving industrial and climate risks," said Ahmad Al Mansoori, chairman of Adnoc Re.

"Leveraging RIQ’s AI-powered platform will strengthen our risk management capabilities and ensure continuity in a complex energy landscape.”

Adnoc’s race to become the most AI-enabled energy company by 2030

03:00

With insurance crucial to driving economic growth and investment, the reinsurance market worldwide has become more competitive over the years, with increasing rates and harsher policy terms and conditions, owing to losses due to wars, a global pandemic and natural disasters.

The reinsurance sector globally is estimated to reach $696 billion this year, from $630.63 billion in 2024, according to Research and Markets data. The market size is further projected to grow to $1.02 trillion in 2029, rising at a compound annual growth rate of 10.3 per cent.

RIQ's latest collaboration with Adnoc along with its strategic alliance with IHC, "creates a collective trajectory of over $1 billion" in reinsurance premiums committed through RIQ’s platform over the coming decade, the statement said.

"Together with our recent partnership with IHC, this alliance brings together cutting-edge technology, strategic capital, and domain expertise to redefine global reinsurance from Abu Dhabi outward," said Mark Wilson, chief executive of RIQ.

The partnerships underscore "Abu Dhabi’s ascent as a next-generation global reinsurance hub, fusing intelligent capital, technology, and structured risk solutions", the companies added.

RIQ is currently advancing through its regulatory process, as it moves toward formal authorisation as a reinsurer.

"Additional strategic updates are expected in the coming months as RIQ executes on its global buy-and-build strategy," the companies said, adding that it aims to ultimately write $10 billion per year.

It aims to serve global markets with a focus on accelerating growth of the insurance and capital markets ecosystem in the Middle East and Asia.