Business Reporter
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| Chedid: Bullish on Qatar’s insurance market |
The company, authorised by the Qatar Financial Centre Regulatory Authority (QFCRA), has also called for the review of the existing third party motor insurance pricing and coverage in view of the sector’s losses.
“Our capital is more than what is required by the QFCRA. We believe, for the time being, it is more than enough,” SEIB chief executive Farid Chedid told a media roundtable yesterday.
The present capital of the company, a joint venture between Sheikh Jabor bin Yusef bin Jassim al-Thani and Chedid Capital, is QR108mn, which is 50% more than the QFCRA mandated minimum of QR72mn.
SEIB recently sold a $600mn management liability insurance policy to Qatar Telecom, which is billed as the largest single party transaction not only in the Middle East but also in the wider Europe and Asia region.
He said such a mammoth deal was made possible only because of the backing up world’s largest reinsurance companies such as Munich Re, Hannover Re and SCOR Global.
On the possibilities in Qatar, Chedid said it expects the sector’s growth will derive strength from the country’s macro economy and irrespective of the Arab Spring fallout in the region.
“Qatar is the most stable country and its insurance sector is expected to grow fast and (with the Arab Spring), trends have been that many reinsurance companies are withdrawing from those regions and focusing more on Qatar, which will eventually yield better prices in the interest of the state,” he said.
Chedid finds increased potential for medical insurance not only because it is being made mandatory in Qatar, probably by either 2012 or 2013, but also on account of the rising influx of expatriate population in view of the high growth expected in the country.
By when the law will be implemented, around 1.5mn individuals could come under the mandatory health cover from the present estimates of 100,000-150,000.
SEIB also finds increased potential for risk cover in sectors such as property, construction, public liability, professional indemnity and workmen compensation.
On the motor insurance policies, Chedid was of the view that it is a “difficult class of business” and not generating profits for the insurance companies. “There needs to be a review on the pricing and coverage provided”, he stressed.
In August last year, third party insurance premium for four-cylinder (ordinary) vehicles had been increased to QR400, while for six-cylinder four-wheel drive vehicles the amount was raised to QR600, according to the new traffic law.