A Chapter From - Regional Practical Guide - Insurance - Qatar
Transport & Insurance Focus
Qatar’s insurance sector operates within a dual regulatory framework, with the QCB overseeing all insurance and reinsurance activities in the onshore jurisdiction and the QFCRA regulating those within the Qatar Financial Centre.
Law Update: Issue 376 – Transport & Insurance
Anand SinghSenior Counsel, Transport & Insurance
Melody HuangAssociate,Transport & Insurance, China Group
Dana DakwarParalegal,Transport & Insurance
This article is part of a regional regulatory guide for the insurance sector and sets out sample questions and responses focused on the State of Qatar. It provides a comprehensive overview of Qatar’s dual-jurisdiction insurance regulatory environment—comprising the Qatar Central Bank (QCB), which regulates insurance in the State of Qatar, and the QFC Regulatory Authority (QFCRA), which oversees insurance activities within the Qatar Financial Centre (QFC). Insurance and reinsurance products, including Takaful and Retakaful, are governed by the QCB Law No. (13) of 2012 and its supporting executive regulations.
The article explores key aspects of regulation such as licensing requirements, reinsurance operations, intermediary qualifications, outsourcing rules, capital thresholds, and dispute resolution mechanisms, offering a practical resource for entities operating in or considering entry into Qatar’s insurance market.
What is the name of the main regulator(s) governing insurance in this jurisdiction? Insurance and reinsurance products in onshore Qatar including takaful and retakaful products are governed and regulated by the Qatar Central Bank (“QCB”) under the QCB Law No. (13) of 2012 on the Promulgation of the Law of Qatar Central Bank and the Regulation of Financial Institution (“QCB Law”). Under the QCB Law, businesses carrying out insurance activities in Qatar must be licensed by the QCB.
What are the main areas which they regulate?QCB regulates all the insurance, reinsurance, takaful companies, and any other companies practicing insurance activities in Qatar.
Does Qatar have any other independent jurisdiction that function separate from the onshore jurisdiction? There are two parallel jurisdictions in Qatar that carry out financial and insurance services i.e. (1) State of Qatar Jurisdiction and (2) Qatar Financial Centre (“QFC”) Jurisdiction.
The financial institutions in the Qatar jurisdiction are regulated by QCB. Insurance and reinsurance businesses regulated by the QCB are primarily governed by the QCB Law, Decision No. 1 of 2016 on Executive Instructions for the Insurance Sector and Principles of Governance of Insurance Companies (“QCB Insurance Regulations”) that governs insurance companies incorporated in Qatar (including their branches), representative offices and branches of foreign insurance companies and all natural and legal persons providing insurance services in or through Qatar, and Decision No. 7 of 2019 on the Instructions on Licensing, Regulating and Controlling the Business of Insurance Support Service Providers (“Insurance Support Service Provider Regulation”).
The financial institutions in the QFC jurisdiction are regulated by QFC Regulatory Authority (“QFCRA”). Insurance and reinsurance businesses in the QFC is regulated by the QFCRA Insurance Business Rules 2006.
Are there any restrictions on the way reinsurance operates in this jurisdiction?To operate and to carry out reinsurance locally within Qatar, the company must secure appropriate regulatory license from the QCB. There are however no requirements under the QCB Law requiring foreign reinsurers to be locally registered for reinsuring Qatar based risks, nor any requirement to reinsure the risk with reinsurers of a minimum standard credit rating or to be subject to any mandatory local reinsurance cession or risk retention. Specifically, Article A7.8.3. of the QCB Insurance Regulations recognise the concept of “fronting” arrangements and it requires the local insurer to ensure they have appropriate procedures to insulate it from the adverse effects of fronting arrangement.
Are there limits or requirements for outsourcing operations to third-party vendors, particularly for critical functions?Outsourcing obligations including material outsourcing are discussed under Part 6.6 of the QCB Insurance Regulations. A “material outsourcing” for an insurer is the outsourcing of an internal control function or any other function of such importance to the insurer that weakness or failure in exercising that function would cast serious doubt on the insurer’s ability to comply with the law or the regulatory requirements, instructions, performance, financial position, or its ability to continue the conduct of its business. The obligation to assess whether an arrangement constitute “material outsourcing” lies with the insurer. Notably, an insurer must not enter into a material outsourcing agreement before obtaining the written approval of the QCB. Furthermore, QCB has the power to have access at any time to the outsourced activity (whether through meetings with the service provider or on-site examinations at the provider’s premises) upon QCB’s request.
How are foreign branches regulated in Qatar?Branches of foreign insurers and reinsurers, working in Qatar, and whose headquarters are established outside Qatar, shall be licensed as branches. Branches of foreign insurers are regulated by the QCB under the QCB Law, QCB Insurance Regulations and Guidance on Licensing of Financial Institutions May 2022. Any applicant for a branch licence must be authorised or licensed under the laws of its home jurisdiction to carry on insurance business of the type or types for which the applicant has applied for the licence, and also disclose any condition or restriction placed on it in its home jurisdiction in relation to the carrying on of insurance business.
In addition, QCB Insurance Regulations recognise “representation insurance office business” which is the business of representing a foreign insurer or reinsurer in Qatar, and is limited to marketing, market research, feasibility studies, providing factual information about the insurer’s or reinsurer’s products and services on request, liaison with its headquarters, contribution in the mitigation of problems and difficulties, provision of facilities to local market companies, and coordination on behalf of the insurer or reinsurer.
What are capital requirements in Qatar? Article 9.2.4 of the QCB Insurance Regulations require the capital of the listed (re)insurer (other than captive insurer) to be the higher of the following:
Risk-based capital requirements;
The amount decided by the QCB from time to time; and
In all cases, the insurer’s capital shall not be less than QR 100,000,000.
The capital for an insurer licensed as a branch as per Article 9.2.7 of the QCB Insurance Regulations shall be higher than the amount decided by the QCB from time to time, and in all cases, the capital shall not be less than QR 35,000,000.
According to Insurance Support Service Provider Regulation, the share capital, which represents the paid-up capital or the shares of capital owners, shall not be less than the following threshold:
Representative of Insurance Company which is a legal person: QR 500,000.
Insurance broker: QR 1,000,000.
Reinsurance broker: QR 2,000,000.
Insurance consultant which is a legal person: QR 1,000,000.
Is there a statute of limitations on insurance claims If so, what is it?Article 800 of the Civil Code confirms that claims arising from the insurance contract shall be time barred after three years from the relevant incidents that may have created such claims. This limitation period is subject to certain exceptions as outlined under Article 800(2).
What mechanism do insurance policies usually provide for resolution of coverage disputes?|The insurance policies in Qatar generally reflect the complaints handling requirements under QCB Insurance Regulations.
Qatar’s insurance sector operates within a dual regulatory framework, with the QCB overseeing all insurance and reinsurance activities in the onshore jurisdiction and the QFCRA regulating those within the Qatar Financial Centre. The regulatory regime under the QCB is comprehensive, covering everything from licensing and solvency requirements to outsourcing, foreign branch regulation, and dispute resolution mechanisms. It also offers a structured pathway for Takaful and Retakaful providers, insurance intermediaries, and support service providers.
Our insurance lawyers in Qatar advise clients across both the QCB and QFCRA jurisdictions on regulatory compliance, licensing applications, market entry strategy, corporate structuring, and policy disputes. Whether you’re a new entrant, an existing insurer expanding operations, or a service provider supporting the sector, we are ready to assist you with practical and commercially driven legal advice. Please get in touch with our team for support with any insurance-related matters in Qatar.
For further information,please contact Anand Singh, Melody Huang and Dana Dakwar.
Published in April 2025
