The insurance market in Qatar is estimated to reach $1.9bn in 2026, growing at a CAGR of 4.7% from 2021, according to researcher Alpen Capital.
The non-life segment is estimated to grow at a CAGR of 4.7% to reach $1.8bn by 2026, aided by expected recovery in economic activity, tourist arrivals during the 2022 FIFA World Cup, infrastructure developments in the run up to the mega event, and the rollout of a new health insurance plan for expatriates and their families, Alpen Capital said.
The FIFA World Cup, which is estimated to attract 1.2mn visitors from across the globe, will provide a "massive boost" to the economy and an uptick in business activity.
“Visitors during the event will also be required to purchase a health insurance plan, helping the segment grow,” Alpen Capital noted.
Property and fire insurance business lines will continue to benefit as World Cup-related infrastructure projects are currently valued at $300bn.
Further projects such as the development of airports, metropolitan network, along with emerging cities are likely to boost insurable assets and aid gross written premium (GWP) growth.
The life insurance segment is estimated to grow at a CAGR of 4.7% during the forecast period, largely driven by increasing awareness among the locals and a relatively stable population growth of 2% CAGR between 2021 and 2026.
Qatar’s insurance penetration is expected to remain stable at 0.9% over the five-year period with density expected to grow at a CAGR of 2.7% to $618.3 by 2026.
The average insurance density (per capita insurance premium) in the GCC "marginally declined" at an annualised rate of 0.2% since 2015 to reach $459.9 in 2020.
Geo-political concerns due to the (earlier) blockade on Qatar coupled with the economic challenges driven by Covid-19 affected the insurance density across the GCC nations.
Alpen Capital noted insurance density varies considerably among GCC nations, with UAE having the highest at $1,246.7, almost thrice the GCC average of $459.9.
It is followed by Qatar ($541), Bahrain ($500.3), Saudi Arabia ($295.4), Oman ($272.6), and Kuwait ($243.2). The average insurance density in the GCC is higher than the emerging market average of $174, primarily due to the comparatively lower population base and higher average per-capita income.
On recent regulatory developments, Alpen Capital said that in May 2020, the Qatar Central Bank had released a guideline document for all insurance companies operating in Qatar on managing the risks related to Covid-19 outbreak.
It highlighted the necessity of reviewing the current systems, policies and procedures related to business risks under the unusual circumstances.
In March 2021, the Shura Council discussed a draft law on healthcare services, which stipulated the provision of healthcare services to Qatari citizens in government health facilities free of charge.
Under the draft law, the Ministry of Public Health (MoPH) will set standards for the provision of healthcare services in government and private health facilities as well as compulsory health insurance and supervision.
It will also work on developing and maintaining compulsory health insurance.
Moreover, this law makes it mandatory for expatriates and visitors to have a health insurance for issuance and renewal of visas.
“The draft law has a provision to provide healthcare services to the beneficiaries without them having to pay any amount upfront in case of emergencies.
“These regulations will help the Qatari insurance industry as it prepares for FIFA 2022 World Cup, which will attract visitors from countries across the globe,” Alpen Capital said.
The non-life segment is estimated to grow at a CAGR of 4.7% to reach $1.8bn by 2026, aided by expected recovery in economic activity, tourist arrivals during the 2022 FIFA World Cup, infrastructure developments in the run up to the mega event, and the rollout of a new health insurance plan for expatriates and their families, Alpen Capital said.
The FIFA World Cup, which is estimated to attract 1.2mn visitors from across the globe, will provide a "massive boost" to the economy and an uptick in business activity.
“Visitors during the event will also be required to purchase a health insurance plan, helping the segment grow,” Alpen Capital noted.
Property and fire insurance business lines will continue to benefit as World Cup-related infrastructure projects are currently valued at $300bn.
Further projects such as the development of airports, metropolitan network, along with emerging cities are likely to boost insurable assets and aid gross written premium (GWP) growth.
The life insurance segment is estimated to grow at a CAGR of 4.7% during the forecast period, largely driven by increasing awareness among the locals and a relatively stable population growth of 2% CAGR between 2021 and 2026.
Qatar’s insurance penetration is expected to remain stable at 0.9% over the five-year period with density expected to grow at a CAGR of 2.7% to $618.3 by 2026.
The average insurance density (per capita insurance premium) in the GCC "marginally declined" at an annualised rate of 0.2% since 2015 to reach $459.9 in 2020.
Geo-political concerns due to the (earlier) blockade on Qatar coupled with the economic challenges driven by Covid-19 affected the insurance density across the GCC nations.
Alpen Capital noted insurance density varies considerably among GCC nations, with UAE having the highest at $1,246.7, almost thrice the GCC average of $459.9.
It is followed by Qatar ($541), Bahrain ($500.3), Saudi Arabia ($295.4), Oman ($272.6), and Kuwait ($243.2). The average insurance density in the GCC is higher than the emerging market average of $174, primarily due to the comparatively lower population base and higher average per-capita income.
On recent regulatory developments, Alpen Capital said that in May 2020, the Qatar Central Bank had released a guideline document for all insurance companies operating in Qatar on managing the risks related to Covid-19 outbreak.
It highlighted the necessity of reviewing the current systems, policies and procedures related to business risks under the unusual circumstances.
In March 2021, the Shura Council discussed a draft law on healthcare services, which stipulated the provision of healthcare services to Qatari citizens in government health facilities free of charge.
Under the draft law, the Ministry of Public Health (MoPH) will set standards for the provision of healthcare services in government and private health facilities as well as compulsory health insurance and supervision.
It will also work on developing and maintaining compulsory health insurance.
Moreover, this law makes it mandatory for expatriates and visitors to have a health insurance for issuance and renewal of visas.
“The draft law has a provision to provide healthcare services to the beneficiaries without them having to pay any amount upfront in case of emergencies.
“These regulations will help the Qatari insurance industry as it prepares for FIFA 2022 World Cup, which will attract visitors from countries across the globe,” Alpen Capital said.