Overall economic growth is consistent with a rise in non-life premiums of about - annually from ---- to ----. The important motor vehicle insurance sub-sector should benefit from higher numbers of cars on the road. ...Infrastructure spending in relation to the FIFA World Cup is something of a positive wildcard: overall, we think that most associated insurance cover will be purchased outside Qatar. Negative wildcards include a reduction in the numbers of expatriate workers in the event that hydrocarbon prices (and, therefore, the economy) are weaker than we have been anticipating. This would have an adverse impact on health insurance premiums. ...Negative wildcards include a reduction in the numbers of expatriate workers in the event that hydrocarbon prices (and, therefore, the economy) are weaker than we have been anticipating. This would have an adverse impact on health insurance premiums.
...BMI View: For ---- and ----, we have revised our estimates of motor vehicle insurance (upwards) and health/personal accident insurance (downwards). The overall result is that total premiums should be a little lower for these two years than we had anticipated in Q---. ...The overall result is that total premiums should be a little lower for these two years than we had anticipated in Q---. Nevertheless, growth in premiums through the remainder of the forecast period - to ---- - should mean that premiums in ----, at QAR--bn, are about the same as those that we had forecast three months ago. Over the forecast period, the growth of the economy should underpin an annual rise in premiums of about - . ...Over the forecast period, the growth of the economy should underpin an annual rise in premiums of about - . However, pricing competition in the property insurance sub-sector and (probably) in the motor vehicle insurance sub-sector will mean that penetration falls from the current level of -.- of GDP to -.- in ----.
...Insurance claims have grown at a spectacular rate over the past few years as increasing levels of coverage have filtered through into claims activity in what is a relatively risk-heavy market. It should be noted that claims have been growing from a very low base, however, with gross claims rising from just QAR-.--bn in ---- to QAR-.--bn by the end of ----. ...
