HE Sheikh Abdullah bin Saud Al-Thani The Governor of the Qatar Central Bank (QCB) was issued decision No. (1) of 2016 on executive instructions for insurance sector and principles of governance of insurance companies, pursuant to the provisions of Qatar Central Bank Act and the regulation of financial institutions promulgated by Law No. (13) of 2012.
The law defines a set of instructions related to licensing, regulations and controls, risk management, accounting and actuaries reports, in addition to prudential requirements.
The new law stipulates that listed insurance companies must have a capital above 100 million riyals or a risk-based capital. Unlisted insurance companies must have a capital higher than the figure set by the Central Bank or the risk-based capital. Branches of insurance companies must deposit 35 million riyals.
The law defines the business controls for insurance companies and other issues, including the notifications and precautionary reports to the Central Bank, as well as topics related to senior owners and changes in ownership in insurance companies, supervision of the group, converting business, stop insurance business, and the transition period for the overall application.
The instructions are the first of kind which regulate the insurance industry in the state comprehensively, The new instructions will go into force as of April 2016. All insurance, reinsurance, takaful and retakaful companies as well as branches of foreign companies in the country are required to adjust their positions according to the decision.