Why Do We Have Insurance Brokers in Qatar?

With a growing population and increasing expatriate settlement in the GCC region, insurance companies are expanding their operations in the Middle East. This development has prompted significant change in the industry. Currently, Qatar is implementing a new rulebook for the insurance sector that will challenge incumbent suppliers to adapt and grow their business. These changes will help improve transparency in the insurance industry and open new opportunities for international suppliers.

In spite of the challenges faced, Qatar is one of the fastest growing insurance markets in the GCC, and is the third largest in the region. Despite the country's relatively low insurance penetration, the insurance sector is benefitting from an array of infrastructure and energy projects. While this has contributed to the country's growth over recent years, the recent fall in oil prices has deterred some insurance providers from fully implementing the new regulatory framework. Meanwhile, the introduction of value-added tax (VAT) on retail policies has been postponed to a date not yet determined. Assuming that Qatar does introduce VAT on insurance policies, this can be a costly administrative exercise.

The QCB is the regulatory body for the financial services industry in Qatar. Licensed insurers have to abide by a new framework, and the new rules were implemented in 2016. These regulations are designed to ensure that Qatar's insurers follow global best practices, and to protect policyholders' interests. The new rules apply to all insurers in the country. So, why do we have insurance brokers Qatar?

In addition, the new law mandates that all players in the insurance chain be authorised. Foreign insurers won't be allowed to participate in the new scheme unless they set up a local entity or obtain the MOPH's authorisation. As with all new laws, insurance brokers will need to prepare for this new requirement. And, in the meantime, employers and sponsors will need to prepare for the new legislation. It will also be interesting to see if the new regime will impose additional regulations regarding top-up healthcare services.

Since Qatar's domestic oil boom in the 1950s, the insurance industry has evolved in different stages. For years, foreign insurers dominated the scene. However, the arrival of a domestic insurer in 1964 changed the face of the industry and made it a national insurance market. In 2014, six locally listed insurance firms formed the National Insurance Consortium, which provided insurance for the Doha Metro project. As a result, the industry has grown by 82%.

In Qatar, there are a number of compulsory insurance lines. These include expatriate health insurance, motor insurance, and workers' compensation insurance. Most insurance companies in Qatar also offer accident insurance, which can cover medical expenses or even loss of income in the event of an accident. Some policies also cover emergency accommodation and flight delays. However, in some cases, it is important to obtain insurance prior to a trip.