Reliable partnership key to resolving claims, says Doha Insurance CEO

With Qatar giving equal opportunity for underwriters to bid and compete in the energy sector, reliable partnership is central to resolving insurance claims in the industry, said Doha Insurance Group CEO Bassam Hussein.
“Fortunately in Qatar, we haven’t had massive claims yet on the energy sector. If you look at the region, in the UAE, they just had a very big claim. So, claims do occur. And the most important thing is to have a reliable partner (as reinsurer). You just can’t throw your assets into the arms of anybody in the international market,” Hussein told Gulf Times yesterday.
On Doha Insurance’s partnership with Axis Insurance, a global insurer and reinsurer, he said, “We value our relationship with Axis. We believe they can add a lot to our portfolio…and we are very comfortable with that. Without their help, we could not have penetrated many accounts. We have a winning partnership, which we want to invest in for the benefit of everybody.”
In association with Axis among other major entities, Doha Insurance organised an “Energy insurance forum” at the Four Seasons yesterday, which was attended by senior risk managers and insurance professionals from major energy and petrochemical companies in Qatar.
Hussein said the forum provided an opportunity for the local industry to “network and interact” with major global insurers and reinsurers.
“The dialogue is very important, especially because Qatar Petroleum has given the sector the opportunity to serve it and be involved in the insurance of various energy entities,” the Doha Insurance CEO said. Asked whether Doha Insurance would target accounts in the energy sector outside of Qatar, he said, “Once we cement our position here, we will probably look at it.”
Hussein said energy premium totalled nearly QR200mn in Qatar now. It was higher earlier, before competition brought the levels down. “The risk, however, is well-maintained,” he pointed out.
Asked how oil price drop impacted the insurance/reinsurance industry Axis Insurance CEO (International Division) Mark Gregory said, “We are not seeing corners being cut on the risk side of the spectrum. That said, the drop in oil price has various impacts…one could be that the assets can get muffled. As prices drop, some of the oil companies start to muffle some of their assets. So they take them out of service. We are insuring a smaller asset base. The financial liabilities get reduced.”
He stressed that “insurance contract is an annual venture.”
“So, while we want to retain relationship with a client, obviously, we still review our risks on an annual basis. The most important thing for us is to select the right risks and maintain close relationship with our clients.”
He said Axis Insurance had entered into a partnership with Doha Insurance some two years ago.
“And the overwhelming feedback we have got from our Qatari clients is that they are very much interested in information exchange, more than anything else. We are working with Doha Insurance to provide that kind of information…that’s why we are here,” Gregory said.
He said, “The focus has been on valuation, but also on claims. These are very complex negotiations – we are bringing to life the issue around successful claims and negotiations. Insurance is still a relationship industry.”