Given the growth of the Qatari economy, and the massive investments being made in infrastructure across the Gulf region, insurance companies are attracted to explore the potential market.
The current wave of capital projects is generating major insurance risks, especially in the engineering, construction and energy sectors. Meanwhile, companies across the region are coming under pressure from investors and capital markets to improve their risk management procedures.
"Insurance is one of the fast-growing sectors in the financial services market. There is significantly lower density for insurance than in similar per-capita-income countries, and penetration is growing faster than GDP," Srivastava of the Qatar Financial Centre Authority says. "As the economy grows, the risk management needs of companies are growing, and there is a need for different kinds of insurance."
According to the World Bank, insurance premiums in the Gulf countries represent only 0.83% of GDP, compared with the global average of 6.9%.
As well as the clear space for growth for commercial and retail insurance companies, the QFC is in particular aiming to develop Qatar as a center for reinsurance, where insurance companies insure their own risks by transferring their risks to a reinsurer.
"Most risk is reinsured outside the region," Mr. Thorpe says. "We want to grow the domestic capacity for reinsurance, so some of the underwriting is done here and the premium will stay in Qatar."
Currently, most premiums are reinsured overseas.
To have an insight on the insurance business in Qatar and on the business of Doha Insurance Group, BUSINESS LIFE reporter had the opportunity to conduct a cover interview with the Chief Executive Officer of Doha Insurance Group, Jassim Al-Moftah.
Jassim Al-Moftah is a distinguished Qatari national with a long standing track record in the Gulf and regional insurance industry, served as CEO of Al Khaleej Takaful Group for several years before joining Doha Insurance Group. He also served in the Foreign Service during the period after graduating With a Bachelor degree in political science from the United States of America. He is one of the recognized insurance leaders in the state of Qatar.
Doha Insurance Group has completed all the arrangements under which it was transformed from one company to another, after the Extraordinary General Meeting of the General Assembly approved earlier this year to amend the provisions of Article (1) of the Company's Articles of Association to become Doha Insurance Group (DIG).
BL: What are your comments on the recent earthquake, flood and fires?
Jassim Al-Moftah: It would really depend on the bottom line impact for our reinsurance panel, and how the insurance industry would counter with its pricing and underwriting tools for the next coming renewals, so it won’t have an immediate effect right now.
In terms of any flooding occurring in Qatar to personal properties, whether to vehicles or homes, we recently launched new motors insurance packages covering floods and rainstorm damages, and more products are in the pipeline to cover and serve our clients’ needs.
BL: What are your views on the development of the Qatar Healthcare System?
Jassim Al-Moftah: The Healthcare system overall is being developed quite well in terms of the private health provider sector, and we are working closely with the Central Bank of Qatar along with our peers from other national insurance companies to get ready for any new rules and regulations that might be coming into effect soon.
BL: How was Doha Insurance Group performance in 2018?
Jassim Al-Moftah: The year hasn’t ended yet, but thank God we have managed to get on target for our 2018 results so far. We are expanding geographically, and we successfully launched our rep offices abroad. We adopted a risk mitigation and Group restructuring plan to enable us to achieve our Group plans and targets for 2019.
BL: What about your plans to open representative offices in London and Beirut to underwrite reinsurance business including energy risks, life, and medical insurance?
Jassim Al-Moftah: These offices are already established. We performed our due diligence and started writing our risks. Also we use a conservative underwriting methodology to expand in the reinsurance sector to avoid any uncalculated risks at this time.
BL: What about your plans to expand Doha Takaful into a separate, fully-fledged, but 100% DIG owned insurance company?
Jassim Al-Moftah: DIG established “Doha Takaful” as it’s Islamic Takaful branch to carry out insurance and reinsurance activities in accordance with Islamic Sharia principles in all areas of insurance. In January 2018, Doha Takaful became a limited liability company and a wholly owned subsidiary of Doha Insurance Group, to independently pursue growth and expansion. Currently we are working closely with the Qatar Central Bank and other regulatory bodies to prepare DTC for an eventual IPO in the appropriate time frame.
BL: What are the news on DIG-owned IT company in Jordan?
Jassim Al-Moftah: Barzan is an IT solutions company that was established in Amman, Jordan in 2017 as one of Doha Insurance Group’s companies. The company provides a multitude of technology-based business solutions, which enable DIG and other companies to enhance business growth through higher efficiency in processes and applications and to widen their client base through achieving users’ satisfaction.
DIG invested in Barzan Technology to drive innovation in its group of companies, making it more digitally-enabled and transparent.
Our vision is to become recognized as a professional IT firm both regionally and globally.
BL: What about the purchase of new income-generating properties?
Jassim Al-Moftah: As a full-fledged Insurance Group that provides core insurance services, our investment policy has to be in line with both asset allocation guidelines set forth by the Qatar Central Bank, and our Group liabilities. Therefore, our Group investment strategies lean towards income generating investment products, and our main focus is fixed income. Nonetheless we do have Real Estate income generating investments locally and globally.
BL: How to tackle the growing cyber risk?
Jassim Al-Moftah: We recently organized a Cyber risk workshop to enlighten our clients on the benefits of insurance in cyber technology, and we are in constant coordination between them and our reinsurance partners to provide them with the necessary required tools and products for their business.
BL: How insurers can invest in big data analytics to improve decision making?
Jassim Al-Moftah: Data analytics are a very important tool for any insurance company, and we have proved that by focusing and investing a lot in our IT department and in all related IT ventures, including business intelligence applications.
BL: What are your plans and strategies for the year 2019?
Jassim Al-Moftah: In line with our pioneering spirit slogan, we will continue to provide our clients and customer base with new and innovative products, to help them in their risk management and day to day insurance needs.
BL: Recently you received (Best CEO award) in the Qatari Insurance sector for 2018, congratulations! What are your thoughts?
Jassim Al-Moftah: I am so proud to receive such an award, and I would like to dedicate this award to all DIG team members. They are the real value and truly the hard workers behind the scenes in making Doha Insurance Group the success it is.
