DOHA: Property insurance in Qatar is expected to remain the largest in the non-life insurance sector over the next couple of years and is likely to value QR6.4bn ($1.8bn) by 2019. A new report from Timetric predicts a bright future for property insurance in Qatar, fuelled by projected infrastructure spending ahead of the 2022 FIFA World Cup, and investment in the non-oil sectors in order to diversify the economy.
In the last five years, the category’s gross written premium skyrocketed from QR1.8bn ($500m) in 2010 to QR4.3bn ($1.2bn) in 2014, at a compound annual growth rate of 24 percent.
According to the report, investment in construction projects will drive property insurance. The growth of property insurance will be influenced by an increased investment in construction activity, propelled by real estate and infrastructure and development in particular. The country is also looking to diversify its economy, with the government planning to spend QR546.1bn ($150bn) on infrastructure projects, as well as allocating more budget to non-oil sectors.
There are six leading insurance providers in Qatar and Qatar Insurance Company is the market leader with 43.5 percent market share, followed by Qatar General Insurance and Reinsurance (QGIRCO) with 18.7 percent share, added the report. The size of the Qatari insurance industry is comparatively smaller than other countries in the Gulf region.
Qatar will also be the first Arab country to host the FIFA World Cup in 2022. The successful World Cup bid is accelerating large-scale infrastructure projects such as metro and light rail systems, the construction of roads, ports, stadia and related sporting infrastructure. Qatar’s real GDP is expected to rise from QR280.9bn ($77.2bn) in 2014 to QR368.3bn ($101.2bn) in 2019, at a compound annual growth rate of 5.6 percent.
The Qatari government plans to start investing in the non-oil sectors – an initiative that is also expected to support growth in property insurance. In 2015, India entered into a bilateral agreement with Qatar to invest in the country’s infrastructure and information technology sectors as part of the Qatar 2030 vision initiative.
