Qatar – Price competition in the insurance sector
Tuesday, 03 07 2017, Category: Insurance and Reinsurance, Country: Qatar
Managers and experts of the local insurance market said that there is no “gentleman agreement” between insurance companies about the price level. Some companies operating in the local insurance market practice a price war by decreasing the price of services by 5% to 7% in order to compete, attract customers and increase market share locally.
Experts also said that insurance companies operating in the local market complied with the executive regulations and governance rules applying to insurance companies, which were issued by the Qatar Central Bank under decision No (1) of year 2016. This decision stipulates that “the capital of listed insurance companies should be the maximum of QR 100 million or the risk-based capital. However, non-listed insurance should have a capital equal to the maximum set by the Qatar Central Bank or the risk-based capital whereas branches of insurance companies have to deposit QR 35 million”.
Source: Al Watan