Keeping a close watch of the insurance industry, Salim Mansour, Country Manager at AXA Gulf Qatar talks to ta’ameen Qatar about the dynamics of Qatar’s insurance market. 

In terms of percentage, what is the consumer consumption of different insurance products, which are purchased by the corporate and by the residents in Qatar? 

The key products for AXA in Qatar are motor insurance and health insurance – both on the corporate as well as the retail side. 

As a product, motor insurance enjoys a distinctive advantage because it has been made mandatory by the government. Not only that, but motor insurance has further been linked to the annual renewal of vehicle registration cards. 

In particular, motor insurance is witnessing a fierce price competition. To address this aspect, we have re-defined our campaign strategy within Qatar and have focused on innovation by launching new motor insurance products, which are well-positioned for the price-conscious customers. 

This allows our customers to ‘select’ their options, in line with their needs and expectations, thereby providing a competitive edge, whilst ensuring that there will be no compromises on benefits and services provided. 

Salim Mansour, Country Manager at AXA Gulf Qatar 

AXA’s health insurance portfolio in Qatar is serving some of the biggest companies and some of the government departments. Albeit health insurance is not mandatory, it is very important as a product as companies understand the real benefits of employees’ retention and are thus providing health benefits for their staff and their dependants. 

In today’s world, health benefits are very well understood by all as companies and individuals target the best local, regional or worldwide insurance protection, with an unmatched personalised service. 

In other lines of business, the individual homeowners’ insurance market in Qatar covers less than five percent of the total portfolio, while the individual travel insurance portfolio adds up to less than five percent in spite of AXA being one of the leaders in the market. This is mainly because the benefits of insurance products are still not well known in the Qatari market and we need to work on educating and creating awareness on the subject to drive need and increase the protection solutions for our consumers. Moving forward, we see a lot of potential for growth across Qatar. Undoubtedly, this surely means that we need to aggressively reinforce our presence in the country.

Which insurance product has maximum demand and public awareness? 

Looking at the corporate requirements and our portfolio, it can be stated that health insurance is the most dominant insurance product. Needless to say, it also has maximum public awareness. This is because there is a lot of awareness on the needs and the benefits of health insurance. 

From an individual’s perception, I would say motor insurance also enjoys high demand and awareness as it is mandatory for anyone who has a vehicle and therefore gains popularity amongst people even though this sector is highly price-driven. 

In my opinion, insurance as a specific industry is constantly hedging against risks, catastrophes and disasters. Hence, the sector should take a more responsible approach in taking all aspects into consideration. As a responsible company, we look at all options and perform proper due diligence to build our business in the marketplace. We ensure to factor in the current situation in our future plans and goals and are realistic about the path ahead. We do not ignore worst-case scenarios and make it a point to include them into our strategy that would then help us determine our ability to adapt-a virtue, which defines a successful insurer. 

We follow all the steps that are required to generate public awareness about our product offerings in the State of Qatar. For example, we have set up a multi-distribution model adapting to our prospects’ buying habits. Now, one can start purchasing insurance online, continue with the quotation process and depth of coverage with the help of our dedicated call centre and finally end his or her insurance buying journey with our point of sales. 

This innovation allows us to take over a larger market share in any insurance segment. As a result, we are already witnessing impressive growth rates in our portfolio in Qatar. 

What is the latest innovation that AXA has incorporated to make its product offerings more attractive? 

AXA has introduced the ‘Medical Provider Locator’ service on mobiles as well as the website, making it possible for customers in Qatar to locate a medical provider on the move, with their smart phones or tablets. Besides being user-friendly, it offers best-in-class features and a simple coherent experience that enables customers to find the list of preferred medical providers in real time across anywhere in the globe. 

Moreover, the Medical Provider Locator not only provides quick and easy access to the medical provider, but also caters to the customer’s specific healthcare requirements at that point in time. 

Overall, our strategy is centred on maintaining a long-term profitable book of business to ensure long-term sustainability in the best interest of all stakeholders. We are quite prudent with our premiums and claims and we also plan to invest more in distribution to increase our footprint and improve our efficiency to optimize productivity.

Given the fierce competition which prevails in the Qatari market, there is stiff price competition amongst various players-especially on certain lines of business. In my opinion, this could even have a severe impact on some of the known players. 

Given the fierce competition which prevails in the Qatari market, there is stiff price competition amongst various players-especially on certain lines of business. In my opinion, this could even have a severe impact on some of the known players. 

AXA Gulf operates on a very efficient business model without compromising on the quality of our product offerings. Competing on price is neither a long-term solution nor is it a healthy trait especially while developing a brand. 

Currently our growth in the State of Qatar is strong but operating expenses (for example salaries, construction costs, medical treatment costs etc.) are also on the rise notably in the healthcare and motor insurance sector. 

Therefore, it is critical for insurers to monitor the market continuously and manage their profitability. The pricing war keeps putting the premiums down, which certainly puts a lot of pressure on insurers. 

It is critical for insurers to monitor the market continuously and manage their profitability. The pricing war keeps putting the premiums down, which certainly puts a lot of pressure on insurers. 

As a group, we use our knowledge and expertise to innovate and build new solutions to match the customers’ expectations in Qatar and across the entire MENA region. 

Although the insurance sector in Qatar is cluttered, there is huge potential for growth. Today we are basing our strategy on organic growth leveraging the potential of the market. 

Which insurance product has undergone major transition in its coverage and why? 

Individual and SME health insurance products have undergone major transition in their coverage as part of their strategy to have a competitive edge in terms of enhanced benefits, price and wider network, locally, regionally and internationally. 

On the flipside, this has led to increased number of insurance companies in Qatar. Additionally, prevailing soft market conditions, lack of expertise in underwriting skills, portfolio management skills and high dependence on reinsurers have taken a toll on profitability for most insurance companies. The need of the hour for insurance companies is to innovate and accelerate the development of the sector as well as educate the population towards the need and benefits of purchasing insurance. 

We see consolidation happening in the Qatari insurance industry for efficiency gains and economies of scale. This will also go a long way in providing opportunities for other players to enter the untapped market. Our strategy is to get closer to our customers and to be available whenever they need us – right from health to motor to large risks to SME… everywhere! 

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