Interview: Salem Al Mannai
What is the potential impact of requiring mandatory health insurance for visitors and non-residents?
SALEM AL MANNAI: This policy is an opportunity to expand the market’s size. The public sector is currently excluded from the scheme, so the onus is on the private sector to make sure it works effectively. The government aims to integrate primary health care services and hospitals into the private sector network, which is a positive development. However, there has been a bottleneck related to the integration of billing systems and pricing services. This issue is not a financial matter, as the budget has been approved. Instead, it relates to the preference of the health authorities to utilise existing infrastructure to generate revenue.
How do you see the sector in the near future, and are there opportunities for the greater diversification of insurance products and services?
AL MANNAI: The current market size for medical insurance in Qatar is around $2bn. Assuming that the government fully activates the medical insurance system across the country’s entire economy, the size of the market could nearly triple to around $6bn, a sign of the sector’s significant potential.
The first noticeable effects of the 2022 FIFA World Cup on the country’s insurance industry were seen as early as 2009, when major construction projects got underway. In this context, a national consortium led by QIC was formed to allocate risk among insurance companies based on their capacities. This helped stabilise the industry and allowed local firms to have a share in underwriting, which in turn reduced the domestic sector’s reliance on international markets.
The market dynamics have shifted since the World Cup concluded. There is still potential in oil and gas, particularly with the expansion of the North Field and other liquefied natural gas (LNG) projects. It is therefore important to continue focusing on the sector – especially LNG – given the GCC’s significance in the industry.
In what ways will technological and digital innovation improve the insurance industry’s performance?
AL MANNAI: When it comes to the corporate side of insurance, there are various tools available for risk evaluation and claims that can boost efficiencies and reduce delays. However, such technologies cannot replace the personal touch in corporate relationships, as such clients expect face-to-face interactions when necessary. While automation can streamline processes within an organisation, the responsibility falls on the insurer to provide the best rates and services to meet client needs. By contrast, the personal line of insurance operates differently, focusing more on the customer experience and a distinct style of business.
On the retail side, there have been notable advancements, with insurance companies engaging with innovative tech start-ups. The focus is on accelerating new companies through a venture capital approach, which requires a clear product concept and providing support during the early stages. Organisations that fail to enhance customer engagement and adapt to new technology could face challenges in the future competitive landscape, since individuals’ expectations have risen with the advent of online services.
For corporate clients, companies have to identify suitable partners, such as banks and financial technology companies, to collaborate on embedded insurance solutions. By integrating insurance offerings at payment gateways and checkout points, entities can provide tailored coverage based on a customer’s purchase.
Although some organisations rely on traditional broker relationships, we believe that undergoing a digital transformation is key to reducing acquisition costs and increasing profitability. As new players continue to emerge and competition in the sector intensifies, enhancing digital engagement will become essential. It is also important to note that the success of adopting and implementing a particular technology depends on its compatibility with the local culture and preferences.
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