Aniyil Prasad, CEO, Marsh Qatar elaborates on the multi-faceted role played by an insurance broker in an emerging insurance market like Qatar. 

Brokers are representatives of their clients and are a critically important component in the efficient facilitation of insurance transactions to best match clients diverse and differing risk profiles. Like any other business, independent and professional advice is significant for the insuring clientele who often may not be subject experts or have complex operations. 

Qatar’s economy is on an upward spiral and its reflections can be seen in its insurance market. Aligning to Qatar National Vision 2030, Qatar has diversified its business portfolio by foraying into oil and gas production, developing an industrial base and establishing sports and tourism facilities. A key aspect to the successful achievement of Qatar’s vision is how the country addresses the increased risks that its diverse development projects encompass.

Aniyil Prasad, CEO, Marsh Qatar 

Henry W. Marsh stated, “The problem is not insurance, it is risk”, and today, his words ring truer than ever, as Qatar embarks on major projects in its mission to develop its infrastructure. Risk being intrinsically connected to the economy, is now moving to the forefront as we have witnessed in other developed economies and is becoming a strategic priority for C-Suite Executives and Risk Managers alike. 

The myriad of complex risks can be addressed by a combination of effective risk management practices and comprehensive insurance solutions. For insurance procurements, clients would require professional assistance for evaluation of their risk exposures and designing a suitable coverage. This independent advice is provided by the broker, who has the depth of knowledge and breadth of international experience to offer various options for its clients. Brokers negotiate broader coverage at the most competitive premiums from the insurance market. 

With the increase in type and complexity of risks, clients in Qatar would find it essential to establish appropriate risk management practices and systems in place. Leading insurance brokers are investing heavily to develop their capability in risk management, data analytics and similar valuable tools to help their clients by offering them the opportunity to make the right decision, to enter new markets and to run their business smoothly. These investments help reduce the ‘total cost of risk’ related to their client’s business activities, thereby contributing positively to their growth. 

While tracking the history of development in the insurance sector, one would find the brokers’ role to be undisputable. Besides being responsible for the innovations witnessed in this segment, brokers also undertake significant responsibilities in their intermediary role between the client and the insurer. 

Basic principles of insurance are often implemented through such obligations whereby insurers obtain quality information that helps them underwrite a risk appropriately and competitively. Qatar, with a growing insurance market and portfolio, would only benefit from the active engagement of such professional brokers. 

A broker should be committed to the development of the local insurance market, which underpins his strategies in designing insurance solutions. This would improve the capability of the insurance sector and create a robust and vibrant market, ultimately contributing positively towards Qatar’s economy. 

Major projects in Qatar are in various stages of implementation. The risk profile of these projects varies significantly and only an experienced broker with the knowledge of global markets could develop an insurance programme that would address those risks. Brokers’ also monitor financial credit rating of insurers participating in an insurance programme and draw the client’s attention to any insurer which falls below the minimum threshold rating. Besides extending comfort, it assures the client of the partnership with the insurers. Brokers also undertake risk engineering activities for their clients and the insurance market. 

Clients are not expected to be experts in insurance, which could prove to be trickier at the time of a claim settlement. During such instances, the broker steps in and provides clarity on the policy cover. A broker is best placed to advise his client on the right approach whilst claiming on the policies and acts as an advocate of the client during discussions with the insurer. It is important for a client to engage a broker to speak the same language as that of the insurer for smooth and efficient processing / settlement of claims. 

Putting myself in the shoes of a client, I would expect my broker to possess following attributes. First and foremost, I would expect my broker to exhibit a professional approach in a completely transparent manner. Secondly, having extensive expertise across a wide range of industry segments would strengthen a broker’s delivery effectively to match my (the client’s) requirements. Thirdly, a global broking company having presence across various geographies would score well by using and sharing best practices to my (the client’s) benefit. Underlying all these attributes is the fundamental expectation that the broker would always keep my (the client’s) interest at the core of his service delivery. 

Qatar recognised the need for such expertise and opened up the market for insurance broking by issuing licenses from 2007. The market witnessed international, regional and domestic brokers establishing operations and engaging with clients to offer their services. 

In an emerging economy with significant development, the role of a broker is more pronounced than ever. The fact that engaging a broker works to the benefit of clients is evident from the increasing number of clients expressing willingness to work with broking companies. A thriving insurance market wherein insurers and brokers work in a coordinated manner towards the benefit of their mutual clients only augurs well for the future of Qatar.