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Collective Investment Schemes these reports and found that improvements had been made by
firms compared to the first ORSA reports that were submitted in
The Regulatory Authority consulted on a framework for retail prop- 2015. Supervisors provided feedback to individual insurance firms
erty funds. The amendments to the Collective Investment Schemes to further improve these reports and embed best practices within
Rules 2010 (COLL) were implemented in September 2016. their operations. ORSA reports are a useful tool for the Regulatory
The Investment Management Supervision department developed Authority’s Board of Directors and senior management to under-
a new set of returns aimed at collective information on investment stand the current and future solvency needs given a particular
products being promoted, arranged or managed in or from the insurer’s risk profile, stress tests, strategy and business plans over the
Qatar Financial Centre. The new Products Returns were released for planning horizon.
field testing from 15 January 2017 and are anticipated to become To complement the Regulatory Authority’s review of ORSA reports
mandatory for the reporting period ending 30 June 2017. and the bottom-up stress testing that authorised insurance firms
already conduct, the Regulatory Authority also carried out an inter-
INSURANCE nal top-down stress testing exercise. The aim of this exercise was
to assess the overall capacity of Qatar Financial Centre insurance
firms to absorb shocks from the realisation of key macrofinancial
During 2016, the insurance supervisory processes were enhanced risks. The exercise helped supervisors examine the effects of adverse
to better identify, assess and mitigate risks to the Regulatory Author- financial conditions corresponding to exceptional but plausible
ity’s objectives. This included implementation of enhanced internal events on firms’ continuing ability to meet their regulatory capital
dashboards, financial analysis reports by each type of insurance requirements. The top-down stress testing proved to be an impor-
firm, as well as the conduct of Own Risk and Solvency Assessments tant tool for the proactive and efficient supervision of authorised
(ORSA), stress testing and client money thematic reviews. insurance firms.

The revised prudential returns and XBRL submission system, which The Regulatory Authority also conducted a thematic review of
were successfully implemented in 2015, were integral to the delivery client money policies, procedures and systems and controls of
of the above initiatives and the continued enhancement of the insurance intermediaries that are authorised to hold client money.
Regulatory Authority’s risk-based approach to supervision. In this The effective operation, control and segregation of client money
connection, the revised prudential returns collect more risk-based is important in helping to ensure that money held on behalf of cli-
data that enables the Regulatory Authority to better allocate ents is adequately protected. The thematic review found that the
resources and to more effectively supervise authorised insurance policies, procedures and systems and controls of the selected firms
firms. were broadly satisfactory. For some firms, the review alerted them
to the need to address specific issues to ensure full compliance with
Insurance charts relevant rules and best practices.

Please see the insurance charts, a selection of graphs highlighting International Association of Insurance
some key trends and facts relevant to the Regulatory Authority’s
authorised insurance firms. These charts illustrate the type of infor- Supervisors (IAIS)
mation that is available to supervisors and the Regulatory Authority’s During the course of the year the Regulatory Authority participated
senior management. in the work of the IAIS as well as its subcommittees. This participation
is important to the Regulatory Authority as it provides an opportunity
Thematic reviews to contribute to the IAIS’s latest policy initiatives as well as to closely
monitor international regulatory developments and best practices.
During 2016 the Regulatory Authority received the second set of
ORSA reports from Qatar Financial Centre insurers that are limited
liability companies. Supervision conducted a thematic review of