Insurance market growth in Qatar in 2020 was fuelled by rate increases for large medical accounts and higher reinsurance rates, resulting in GWP growth of about 5%, according to Mr Emir Mujkic, director - lead analyst, Insurance Ratings at ?S&P in the report "GCC Insurers In 2021-- Robust Capital Supports Credit Quality".
He added, “We anticipate a similar growth rate in 2021, due to higher public expenditure to diversify the Qatari economy, further preparation for the 2022 FIFA World Cup, and removal of restrictions between Qatar and Saudi Arabia, as well as with other countries that severed relations with Qatar, including Bahrain, Egypt, and the UAE.”
He expects the market to report combined ratios of 96%-98% for 2020-2021. The ratio weakened to about 102% in 2018, due to high competition and company-specific issues, but has improved in recent years.
He also says that Qatari insurers are likely to benefit from increased regional travel, tourism, and possibly trade, which could lead to an increase in insurable risks and consequently GWP. A potential introduction of mandatory medical cover for inbound travelers and residents could support GWP growth in the coming years.