(MENAFN- Gulf Times) Plans are afoot in the Qatar's insurance industry to expand the product offerings such as life and health and launch climate insurance as well as tailored insurance services for priority sectors as logistics and manufacturing.
These, among other suggestions, were made in the Qatar Central Bank's (QCB) recently launched third financial sector strategy, which called for strong regulatory measures to position insurance and provide effective management of financial and economic risks as Qatar's economy expands and diversifies.
The QCB is set to implement reforms to“digital leapfrog” in the insurance sector by developing Insurtech in the country so as to enhance the universe of insurtech players. The strategy suggested "laying out the fundamentals to become the recognised Insurtech hub in the Middle East and North Africa (Mena) through necessary reforms and incentivising ventures."
Insurtech includes the use of technology innovations to bring in savings and efficiency to the insurance industry model. According to a survey conducted by the Qatar Financial Centre, around 82% of insurance executives in Qatar considered Insurtech to be a significant driver of change in the industry.
The financial sector strategy sought to identify select growth areas through expansion of product offerings to cover the full range of insurable risks, which included measures to develop local insurance market through annuities, disability insurance, wage protection, and mortgage protection. It also sought to expand insurance offerings to underserved segments for increased inclusivity.
The strategy sought to increase sophistication of insurers' capital/asset management practices to limit premiums "leakage" and ensure capital flow into Qatar's economy.
The strategy "will be achieved through eight initiatives and 41 action items, including 26 priority ones", the central bank said.
The QCB highlighted the need to develop a roadmap to boost consumer demand for insurance products by incorporating educational training, incentives and awareness campaigns, emphasising the QCB's "strong stance on the significance of the insurance sector.
Highlighting the need for enhancing the share of share of climate risk or green insurance related gross written premiums; the strategy aimed at offering comprehensive and inclusive insurance solutions, while also providing guidelines for the insurance sector to measure their carbon footprint.
In order to fortify the retention ratio of premiums, the financial sector strategy sought to review and optimise the operating model and regulatory framework for insurers to improve business operations and efficiency.
The strategy aimed at creating“the optimal environment to increase retention by insurers and position Qatar as a preferred destination for the international re-insurance market.”
Stressing on the need for increasing the proportion of institutions leveraging central database, the strategy suggested safe data and information management systems and established data reporting processes and standards for transparency and efficiency.
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