(MENAFN - The Peninsula) With Qatar rolling out its ambitious development projects, insurance and risk management industry is emerging as a key business in the country.
The announcement of multi-billion dollar projects in the infrastructure and energy sectors is set to turn Qatar into a top market and the key market players are eying on an estimated 1bn premium likely to emerge in the next five to six years, believe the market experts.
The Middle East's risk insurance market is to witness an exponential growth rate in the next 5-6 years. The volume of the premium would reach something 1bn-2bn by 2018. Qatar, with huge investment projects under its sleeve, will be the strongest player, they argue
In the Middle East, investments in the construction sector alone are set reach staggering 1 trillion in the next few years. Even if just half of these proposed projects are taken off, the volume of the premium would be huge. "I would say, when you are talking for a trillion dollar investment, the premium would be something more than 2bn; and Qatar will have a meaningful role in this number," Gaurav Bhatnagar - Senior Vice President, Middle East Construction Practice Leader, MARSH, told The Peninsula.
The just-concluded Doha Multaqa conference underscored the need of GCC emerging as a risk management 'hub' to serve the needs of the public and the rapidly growing private sector.
At the conference, experts argued that an integral part of the region's strategy should be to create a risk management hub that would have a great deal of impact on various industries, both government and private. This hub would compromise all components of the risk management industry and become a strategic tool for Qatar to develop its source for risk management service for the country.
"The risk concept has changed and is changing. Old approaches to risk management may no longer be appropriate", says Prasad Aniyil, CEO, MARSH Qatar. These days clients are looking for people who can bring value on the table. They want to associate with the professionals who can provide benchmarking information and better ways of protecting their risks.
As more and more projects coming up in Qatar, we will see more clients seeking to manage their risks", he said.
Marsh Qatar is the leading and most well-established risk and insurance services firm in Qatar. It caters for a range of clients; major corporations to small to medium business houses of varied, industry and risk exposures. Licensed by QFCRA and drawn on its global capabilities combined with customized risk management programmes, it is suited to both their enterprise and the region, claims Aniyil.
Aon is another strong market player. Licenced by QFCRA, it is a key player in Qatar's risk management, insurance and reinsurance brokerage.