Qatar Insurance Report Q2 2016
BMI View: Qatar's insurance market, though relatively small, is expected to grow steadily throughout ourforecast period from 2016 to 2020, driven by demand for several key non-life lines including propertyinsurance. While life insurance remains in the very early stages of development, the non-life market isrelatively mature with a broad range of products available via well established domestic and regionalproviders. The role for multinational insurers is limited at present, though regulatory changes expected in2016 could attract more foreign investment to the market.
Latest Updates and Developments:
Qatar's leading domestic insurance provider, Qatar Insurance Company (QIC), reported substantialgrowth in 2015 with premiums rising by almost 50%. In order to maintain growth and comply withregulatory requirements, in early 2016 QIC approved a USD162mn capital increase, raising shareholders'equity to USD2.1bn.
We expect to see solid growth in Qatar's insurance sector in 2016, with premiums forecast to grow by5.5% to reach QAR8.2bn (USD2.3bn). Somewhat slower growth is expected over the remainder of theforecast period, with gross premiums written expected to reach QAR9.2bn (USD2.5bn) in 2020.
Qatar is in the process of updating its regulatory environment. The Qatar Central Bank (QCB) is settingout a framework for updating the licensing and conduct regulations for insurers which will expand theallowed role for foreign insurers in a range of non-life sub-sectors and could attract more insurers toobtain a licence from the QCB instead of the Qatar Financial Centre Regulatory Authority (QFCRA).
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