ID :
194579
Tue, 07/12/2011 - 14:48
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Shortlink :
http://m.oananews.org//node/194579
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Reforms and Foreign Firms 'Spur New Insurance Markets'
Doha, July 12 (QNA) - The gradual opening up of markets, arrival of foreign firms and placement of financial experts is spurring the development of new insurance markets and increasing its total size in Qatar, a director at Qatar Financial Centre Authority (QFCA) said here Tuesday.
QFCA Director, Strategic Development, Akshay Randeva, in an exclusive interview with Qatar News Agency (QNA) said, "Most of the insurance firms attracted to Qatar and the region through the Qatar Financial Centre, are contributing to the development of new insurance markets and increasing the total market size. Particularly, the insurance firms licensed by the QFC, have supported the growth of the life and health insurance segments which were underinsured previously."
The opening of the Qatar market will lead to a positive impact on three facets of the economy the State and State enterprises, the population and the general economy of the country.
The first two will benefit due to the availability of better products, pricing, services and new lines of business from domestic and foreign firms operating here, he said.
"The country s economy in general will benefit by the better understanding and coverage of risk that result from the opening up of the market and bringing on board of expertise to educate on the importance of enterprise risk management as a creator of value," said Randeva.
Taking on board international talent as well as developing internal expertise has boosted the technical capabilities of national and regional reinsurers. This has narrowed the expertise gap between global and regional firms.
"Improved underwriting and technical expertise has helped local insurance firms retain more premiums than they were doing in the past. This increase in retentions by local firms is evidenced by the numbers - In 2005, 53% of GCC premiums were ceded to reinsurers, whilst by 2010 the local industry retentions had increased by quite a bit with the ceded premiums representing only 46%," said Randeva.
"There is limited information regarding the growth and development of the insurance industry before 2005, however, data from the Qatar Statistics Authority demonstrates that the FIREBS sector (Finance, Insurance, Real Estate and Business Services) grew faster than GDP over the past decade, and grew at its fastest, 27.3% compounded annual growth rate, between 2005 and 2010," he revealed.
Asked about other factors supporting local firms, Randeva replied, "Insurance firms generally have become more cautious and more wary of counter-party risk in the aftermath of the crisis. There is a trend amongst insurers of spreading their risks across a greater number of reinsurers, instead of relying on only a few as before. This has directly led to local reinsurers winning new regional and international business."
QFCA Director, Strategic Development, Akshay Randeva, in an exclusive interview with Qatar News Agency (QNA) said, "Most of the insurance firms attracted to Qatar and the region through the Qatar Financial Centre, are contributing to the development of new insurance markets and increasing the total market size. Particularly, the insurance firms licensed by the QFC, have supported the growth of the life and health insurance segments which were underinsured previously."
The opening of the Qatar market will lead to a positive impact on three facets of the economy the State and State enterprises, the population and the general economy of the country.
The first two will benefit due to the availability of better products, pricing, services and new lines of business from domestic and foreign firms operating here, he said.
"The country s economy in general will benefit by the better understanding and coverage of risk that result from the opening up of the market and bringing on board of expertise to educate on the importance of enterprise risk management as a creator of value," said Randeva.
Taking on board international talent as well as developing internal expertise has boosted the technical capabilities of national and regional reinsurers. This has narrowed the expertise gap between global and regional firms.
"Improved underwriting and technical expertise has helped local insurance firms retain more premiums than they were doing in the past. This increase in retentions by local firms is evidenced by the numbers - In 2005, 53% of GCC premiums were ceded to reinsurers, whilst by 2010 the local industry retentions had increased by quite a bit with the ceded premiums representing only 46%," said Randeva.
"There is limited information regarding the growth and development of the insurance industry before 2005, however, data from the Qatar Statistics Authority demonstrates that the FIREBS sector (Finance, Insurance, Real Estate and Business Services) grew faster than GDP over the past decade, and grew at its fastest, 27.3% compounded annual growth rate, between 2005 and 2010," he revealed.
Asked about other factors supporting local firms, Randeva replied, "Insurance firms generally have become more cautious and more wary of counter-party risk in the aftermath of the crisis. There is a trend amongst insurers of spreading their risks across a greater number of reinsurers, instead of relying on only a few as before. This has directly led to local reinsurers winning new regional and international business."
