Qatar Central Bank to regulate insurance broking sector
Source: Middle East Insurance Review | Dec 2016
The Qatar Central Bank (QCB) is in the process of regulating intermediaries in the insurance sector, with the work expected to be completed by the end of this year.
It is understood that about 30 companies have met the qualifications set out by the QCB and would be included in the list of licensed brokerages, reported Gulf Argaam. Insurance and reinsurance companies will be required to deal only with the licensed brokers.
The exercise aims to clean up the sector as several brokers were found working without adhering to standards while some licensed firms were in fact not carrying out insurance broking operations.
The QCB called on insurance intermediaries that are yet to be licensed to expedite improvements to their operations and positions so that they can be licensed to deal with insurance and reinsurance companies in the country.
The financial regulator is expected to issue new regulations governing insurance brokers soon. The new rules will require insurance brokers to issue financial statements, maintain staff and have offices, among other terms.
Earlier, the QCB published a consultation paper on draft rules for regulating insurance broking companies that cover a wide range of areas including the conduct of activities and the provision of service, grievance handling procedures, licensing, registration and eligibility, governance, avoidance of conflicts of interest and risk management.
The QCB is keen to improve the performance of the insurance sector and for it to adopt higher standards.