The Last Part Of The Jigsaw? New Regulations For Insurance Intermediaries In Qatar

Qatar is continuing to drive forward its legislative and regulatory agenda for financial services; particularly taking measures to strengthen the requirements in the insurance sector where recent growth has been significant. New Qatar Central Bank regulations for insurance intermediaries represent one of the remaining areas for regulatory provisions in Qatar; below we examine the key aspects.

New QCB Regulations for Insurers now in force and bedding in

The QCB has established its own Insurance Division with separate teams covering insurers and intermediaries.

In April 2016, the QCB issued its Executive Instructions for Insurers ('Insurer Rules') with comprehensive rules covering licensing of insurers operating in the State and with extensive requirements for prudential and financial compliance as well as conduct of business rules. These requirements have been bedding in.

New QCB Regulations for insurance distribution and servicing - in 'draft' but licensing already well under way

In October 2016, the QCB also issued 'in draft' its Instructions for Insurance Intermediaries, Representatives and Service Providers (' Intermediary Rules'). These are expected to become final in the next few months.

Categorisation of intermediaries, company representatives and service providers

The Intermediary Rules apply to various businesses carrying on activities relating to insurance. These include intermediaries, insurance company representatives and service providers:

Intermediaries: persons conducting insurance mediation - insurance mediation excludes one insurance company selling another insurance company's products as well as the activities of insurance company representative offices. Company representatives: persons conducting insurance agency business. Company representatives can only represent one insurance company in respect of each category of insurance i.e. one insurer for each of general, life assurance or long term. Company representatives must have contracts of agency with the relevant insurance company in compliance with the QCB Insurer Rules. Service providers: businesses providing third party services such as actuarial, insurance consultancy or loss adjusting services to insurers. With regard to insurance consultancy, these include areas such as risk assessment or compliance. Service providers applying for licences are not strictly required to be resident in Qatar but, if they are based outside of Qatar, the QCB will need to consider and take into account the applicant's home state jurisdiction and 'whether the applicant's jurisdiction or legal system allows it to carry on insurance services efficiently and does not prevent the QCB from appropriately supervising the applicant effectively'.

Service providers will also need to register with the QCB their employees that provide the services to clients. These employees will need to be appropriately skilled, experienced and qualified.

Intermediaries and company representatives must have licences from the QCB. Service providers should also be licensed to operate in Qatar but, in exceptional circumstances, the QCB may register a foreign service provider to provide actuarial or loss adjusting services without a licence in...