Khalifa Abdulla Turki Al-Subaey, group president & CEO of Qatar Insurance Group (QIC), shares his views on the health of the Qatar insurance market, the positives and possible negatives of increased competition, and the importance of bringing innovative products and services to the market.

Khalifa Abdulla Turki Al-Subaey, group president & CEO of Qatar Insurance Group (QIC)

How has business for QIC been over the past year and how would you best describe the current state of the Qatar insurance market?

QIC has not been immune from the global catastrophes over the last two years or so, but our Group has an inherent resilience to weathering such storms. Of course in the risk business we can never be sure of our final results until we close our books at the end of the year, but all being well we will produce another positive result.

Regards the market in general, I would describe it as increasingly competitive. As you know, our market along with others has opened up and there are now some 28 insurance companies operating in Qatar.

Competition will always drive service and quality at the higher end of the market. It is these two key attributes that we promote throughout our Group.

West bay, Doha

Of course competition comes with resultant pricing pressures. Where sensibly applied this is good for the market and the customer. However, it is a mechanism that must be used with prudence by the insurance industry and viewed with care by the insuring public. To quote some old and basic wisdom still very much pertinent today, one gets what one pays for.

It is important that clients examine the product and scope of cover they are offered, the reputation of the insurance company, its service capabilities – and very importantly, its Standard & Poor’s/ AM best ratings. These ratings provide the benchmark against which to compare, among other things, the financial strength of an insurance company.

What have been the main growth sectors for QIC and why?

As the oldest and largest insurance company in Qatar we have a balanced portfolio of business with a raft of clients in the energy sector at one end of the spectrum to a robust personal lines portfolio at the other. As such we seek to maintain our position in the market and strive for incremental growth across all our lines of business.

As opportunities arise to bring new products and services to the market then we will do so. It is a matter of carefully monitoring the economic and market dynamics of the State of Qatar, continuing to meet clients’ needs and providing enhanced services.

As the country has grown and Doha has spread out, a demand has arisen for clients to purchase and renew their insurances without coming into our office. In this respect we have recently introduced three new services for our clients. First are online services. Second are remote access insurance modules – small manned offices strategically placed in various mall complexes.

Third, we have installed a number of automated insurance machines in key positions. These look very much like bank ATMs and provide clients with the opportunity to purchase or renew their insurances at their convenience, up to 24 hours per day.

With the growth of certain Takaful players in the market what are some of the opportunities and challenges within the conventional insurance sector?

The growth of Takaful insurance is a natural development in Qatar and throughout the GCC. It is a well-established risk transfer vehicle that has been in place in other parts of the world for some time now. I do not see Takaful as a challenge, but rather as a natural complement to our more traditional insurance business.

Looking at the modern insurance industry which started in the UK in the 18th century, there was a time when a great number of cooperative companies operated in the UK and some survive to this day. The concept is not too far removed from Takaful.

It is only right that clients in Qatar, whether corporate or personal, should have the choice to protect themselves through Shariacompliant products. A strong Takaful sector will only add to the vigour and diversity of our insurance market.

Do you believe we will ever see a significantly higher penetration rate for markets such as life and home insurance?

Yes indeed. This would be a natural development in any young industry as it matures, as populations expand and asset bases grow. The growth in both life and homeowners insurance is a natural result of a maturing and expanding market.

Of course insurance companies need to ensure that the client has access to online, secure and ease of purchase products. This is already happening as I mentioned earlier, and will expand and enhance as time goes on. Like it or not, we are now all connected on a 24/7 basis. This is what the market is increasing demanding, particularly among the younger IT savvy generation.

What are the main future challenges for the Qatar insurance industry over the next five years?

This issue warrants a detailed discussion in itself, but in summary we first need to ensure that the Qatar insurance market remains both strong and secure. This is achieved through responsible competition and fair and reasonable profits being generated for shareholders. We must have a win–win, business model. There is however the danger and challenge of excessive competition. This has the potential to drag the market into an overall loss, as has been experienced by many other sectors over the years. It is up to both local and foreign insurers to temper that competition and ensure that a fair, responsible and responsive market is available to clients.

Any new product developments at QIC?

Well that’s a leading question. I would only ask you to watch this space and follow our developments. I am sure you will appreciate that in this competitive marketplace we must work to keep our edge against some very strong and smart competitors in the market that are striving to do the same. I think I can best sum up my answer by saying that QIC will always be alert to both the current and changing needs of our clients.