Qatar: Insurance market saw slower growth in 2018
Source: Middle East Insurance Review | Sep 2019
GWP in Qatar increased by 7.5% during 2018, representing slower growth compared to 2017 when the pace of increase was 14.5%, according to the Qatar Central Bank (QCB) Financial Stability Report.
GWP stood at QAR15.5bn ($4.3bn) in 2018, with domestic insurers contributing QAR15.2bn and branches of foreign insurers, QAR0.3bn, the report said. The retention ratio increased from 76.9% in 2017 to 79.1% last year.
Net profit, after declining sharply for the previous two years, recorded a healthy 22% growth in 2018 to QAR1.2bn.
The loss ratio moderated during 2018 from the high level of losses in global operations due to a natural calamity in the previous year. This decline in the loss ratio more than offsets the increase in the expense ratio, resulting in a lower combined ratio.
Despite the combined ratio remaining above 100%, the market continued to remain profitable in 2018 because insurers also earned commission income from reinsurers, as well as investment income, which offset technical losses.
Last year, the solvency of insurers moderated somewhat from very high levels, but remained much above the regulatory requirements. Average solvency ratio stood at 247.7% on a solo basis and 231.4% on a consolidated basis.
Qatar’s insurance sector comprises 12 companies, of which eight are domestic and four are branches of international companies. There are eight conventional insurers and four takaful operators. M
QAR1 = $0.27