News in brief

THE COST of insuring Dubai’s debt against default has risen dramatically following the revelation the emirate would seek to restructure debt held by state-run entity, Dubai World, which has almost $60bn worth of liabilities. It now costs around $600,000 to insure $10m in Dubai debt for a period of five years, up from a previous $50,000, and now more than insuring, for example, Iceland sovereign debt. The Middle East insurance hub, a favourite for takaful underwriters, is home to the likes of Talbot, Zurich, Allianz, Lancashire and QBE.