Abu Dhabi, 8 December 2011

"Risk managers are looking at captive insurance as a means to manage risk better”

Insurance experts attending a seminar  here today heard how the Gulf region is increasingly close to developing into a captive insurance centre capable of competing with existing markets elsewhere in the world. The seminar was the first in a series called Opportunities for Captive Insurance in the Gulf and was based on a report recently published by MEED Insight, the consultancy in association with the Qatar Financial Centre Authority.

The report, The GCC Captive Insurance Guide, explains the captive insurance concept and examines the conditions and the prospects for the growth of the market in the region.  A captive insurance company is generally a legal entity created to insure the risks of its parent company or group of companies. The aim is to lower the cost of insuring the risks and seek greater control over the risk profile.

Captives, as they are commonly known in the insurance industry, are growing in popularity among companies around the world. The report provides a comprehensive overview of the industry in the GCC and concludes that this insurance model is set to attract more companies in the region wishing to improve their risk management.

Among the reasons for expecting the GCC captives industry to grow are:

• The increasing size and sophistication of regional companies
• The transformation of state entities into commercial companies
• Regulatory and tax regimes established by regional financial centres to attract captive insurance business
• The general maturing of the Gulf insurance industry as the economy expands
• High capital investment and infrastructure spending.

Akshay Randeva, Director of Strategic Development at the Qatar Financial Centre Authority, said: “The development of the GCC as a centre for captives is becoming a talking point, due to the changing attitudes towards risk management and the positive economic situation in the GCC, and Qatar particularly.  Local and regional companies 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. Although the captive industry is still underdeveloped in this region, a confluence of factors including continued regulatory efforts, paired with economic growth, is contributing to a wider acceptance of captives as an essential part of the risk management programs of the larger corporates.”

- Ends  -

Notes to the Editors
The MEED Insight report can be downloaded from http://www.qfc.com.qa/Files/Reports/MEED%20GCC%20Captive%20Insurance.pdf

 For further information please contact:

Qatar Financial Centre Authority
Stephen Carriere
Head of Marketing and Corporate Communications
Qatar Financial Centre Authority
Tel: +974 4496 7784 - email: s.carriere@qfc.com.qa  www.qfc.com.qa

Citigate Dewe Rogerson
Habib Bacha
Tel: +971 2 401 2612
+971 50 111 3799 (mob)
Habib.bacha@citigate.com

About QFC
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 in particular those operating in the reinsurance, captive insurance and asset management sectors 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 operating within the QFC. The QFC was created by Qatar Law No. (7) and has been open for business since 1 May 2005.

QFC Authority
The QFC Authority is the commercial, administrative and legislative body responsible for leading the expansion of Qatar’s financial services sector, providing a uniquely sustainable platform for regional growth in reinsurance, captive insurance and asset management.