Page 39 - English

During the course of the year the Regulatory Authority received the first Own Risk and Solvency Assessment (ORSA) reports from all Qatar Financial Centre insurers that are Limited Liability Companies. This ORSA requirement was effective from 1 January 2015, with an LLC board and senior management required to assess their firm’s current and future solvency needs according to their risk profile, stress tests, strategy
and business plans over the planning horizon.
This is an important enhancement to the Regulatory Authority’s prudential supervision of these insurers that is in accordance with international regulatory standards and complements the regular prudential return and financial condition reporting that the Regulatory Authority continues to receive and assess.
Regulatory Cooperation with the Qatar Central Bank
In accordance with the Regulatory Authority’s strategy
of enhanced regulatory cooperation, during the year the Regulatory Authority assisted the Qatar Central Bank’s insurance and legal departments to finalise the regulatory framework for insurance firms operating in the State of Qatar. This included the provision of technical assistance from policy to develop the regulatory regime for this sector, licensing strategy perspectives as well as training and professional development initiatives.
The Regulatory Authority’s role
is to ensure that the regulation
of insurance firms is closely aligned between the State
and the Qatar Financial Centre in the key areas of licensing, prudential requirements and market conduct requirements. The Qatar Central Bank issued draft instructions for industry consultation in mid-2015, with finalised instructions issued in 2016.
Involvement with the International Association of Insurance Supervisors (IAIS)
The Regulatory Authority actively participated in and supported the work of the IAIS as well as its sub-committees. This allowed the Regulatory Authority to contribute its regional regulatory experience when appropriate to the latest policy initiatives of the IAIS as well as to monitor relevant international developments and supervisory practices. During the year the Regulatory Authority completed IAIS Self-Assessment and Peer Review questionnaires as part of its processes to regularly benchmark its regulatory regime with the latest international standards.
In this regard, the Insurance Supervision team worked closely with the Regulatory Authority’s Financial Analysis team and developed 150 standard graphs by risk area and business activity, taking account of the differences between insurers that are
Limited Liability Companies and branches (whether conventional or Takaful insurance businesses) as well as intermediaries. The analysis was supplemented
by system-generated data components for the production of each firm’s Management Information Report and Risk Review analysis.
A selection of charts on
pages 50-54 illustrates the categories of insurance
sector data collected by the Regulatory Authority as part of its supervisory responsibilities. This data is used on a daily basis in supervision practices to inform decision-making at the Regulatory Authority:
1. Composition of total assets
2. Composition of investments
3. Composition of total liabilities
4. Premium by line of business
5. Retained premium and ceded premium
6. Combined ratio analysis
7. Composition of income statement
8. Distribution of business by geography
9. Capital adequacy for insurance LLC firms
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