The QFC Regulatory Authority has released the Captive Insurance Business Rules 2011 and Insurance Mediation Business Rules 2011. The new insurance regulatory frameworks applying to captive insurers, captive managers and insurance intermediaries will commence on 1 July and have been designed to support the development of Qatar as a regional centre for captive insurance.
The new insurance regimes follow the implementation by the Regulatory Authority of a new regulatory regime for asset management in the Qatar Financial Centre, which commenced in January 2011.
The implementation of the new insurance rules comes at a time when companies in Qatar and the region, who are involved in major capital projects, are increasing their focus on more effective and efficient risk management strategies and exploring the use of captives as a method of better controlling risks and insurance costs.
The Regulatory Authority Deputy CEO, Michael Ryan, commented that:
“Captive insurance offers significant risk management opportunities for companies based in Qatar and the region. Our new regime has benefitted from extensive consultation with global captive insurance managers and that consultation process has helped us to ensure that the new framework meets international standards and provides a strong foundation for the successful development of a captive and reinsurance market in Qatar.”
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Media Contacts:
Valerie Ward – QFC Regulatory Authority
T: +974 4495 6776
F: +974 4483 0894
E: v.ward@qfcra.com
About the QFC Regulatory Authority
The QFC Regulatory Authority is an independent regulatory body established by Article 8 of the QFC Law. It regulates firms that conduct financial services in or from the QFC. It has a broad range of regulatory powers to authorise, supervise and, when necessary, discipline firms and individuals. The QFC Regulatory Authority regulates firms using principle-based legislation of international standard, modelled closely on that used in major financial centres. Further details are available on the website www.qfcra.com
About the Qatar Financial Centre
The Qatar Financial Centre (QFC) is a financial and business centre established by the Government of Qatar and located in Doha. It has been designed to attract international financial services institutions and major multi-national corporations and to encourage participation in the growing market for financial services in Qatar and elsewhere in the region. The QFC operates to international standards and provides a first class legal and business infrastructure for those doing business within the QFC. The QFC was created by QFC Law No.(7) of Qatar and has been open for business since 1 May 2005.
Captive Insurance
A ‘captive’ is an insurance business created or owned by an industrial, commercial or financial group, the purpose of which is to insure risks emanating from its parent company or group. As such, captives are part of the wider ‘self insurance’ industry and are one of many financial vehicles in the risk management sector.
Captives present a number of benefits by compensating for coverage gaps in the insurance market, reduction of risk financing costs, retention of underwriting profits and direct access to the professional reinsurance market