A group of six local insurers, banded together to form the National Insurance Consortium (NIC), has won an 80% lion’s share of an insurance contract for capital expenditure works related to the construction of stadiums for the 2022 FIFA World Cup in Qatar.
The contract was awarded by the Supreme Committee for Delivery & Legacy (SC), the organisation responsible for delivering the infrastructure required for the 2022 tournament, reported Gulf Times. The value of the contract was undisclosed.
The six insurers are: Qatar Islamic Insurance Company (QIIC) – the lead organisation in this contract; Qatar Insurance Company; Qatar General Insurance & Reinsurance Company; Al Khaleej Takaful Group; Doha Insurance Company; and Al Koot Insurance & Reinsurance Company.
The remaining 20% of the risk was allocated to SCOR Global P&C of France, bringing about a mix of international and local expertise for this risk.
The capital expenditure insurance contract is under an Owner Controlled Insurance Programme (OCIP) and provides Construction All Risk and Third Party Liability coverage for seven of the eight currently planned stadiums for the 2022 World Cup. The seven venues are being built from scratch. The eighth arena is the Khalifa International Stadium where extensive refurbishment is expected to be completed by the second quarter of 2017.
The terms of the OCIP were determined through a competitive bidding process in the international reinsurance market through the SC’s appointed broker, Jardine Lloyd Thompson (JLT) which was also selected through the same process.
SC’s Secretary General Hassan al-Thawadi said that the insurance contract focuses largely on Qatar’s domestic insurance market and the contract participants are mostly made up of local Qatari organisations, in line with the government’s goal of using the 2022 World Cup as a catalyst to further develop the country in line with the Qatar National Vision 2030 roadmap.
“The placement of 80% of the risk with the NIC also demonstrates the SC’s and Qatar’s full confidence in the organisations that make up the NIC, and will help further cement the strong reputation Qatar’s national insurance market has regionally and around the world,” he added.
The NIC has also provided extensive cover to other leading development programmes in the country, including Qatar Rail and Ashghal, the Public Works Authority of Qatar.