DOHA: Pakistan's insurance major, State Life Insurance Corporation (SLIC), is set to foray into Qatari insurance market. SLIC is expected to launch its Qatari operations by the middle of 2012.
Khalid Mehomood Shahid, Zonal Chief of Gulf SLIC told The Peninsula from Dubai that the SLIC has massive expansion plans across the region in the new year. "The discussions with the Qatari Central Bank are progressing. If everything goes well, we will be in the market by the middle of 2012.", he said.
Shahid said the insurance company would be entering into Bahrain market in the next couple of months and target Qatar's life insurance market by March-April 2012. The State Life is also looking forward to further strengthen its presence in the UAE, Saudi Arabia and Kuwait.
The company's Qatari strategy would basically to target the Asian expatriate community, though it would cover all nationalities. Pakistanis form one of the largest Asian expatriate communities in Qatar. But it would offer.
Premiums would be collected both in local currencies and the US dollar. It would offer returns of up to seven per cent to policyholders in addition to a competitive annual bonus. The policyholders would be free to transfer their policy to their home country in case they leave the Gulf country for good.
SLIC, which has more than 70 per cent market share in the home country, operates through 26 zones for individual life business and four zones for group life business. The Karachi-based firm has been playing a key role in Gulf insurance market since 1978.
During his recent visit to UAE, Shahid Aziz Sidhique, Chairman, SLIC said State Life is in the process of setting up an independent insurance firm in Saudi Arabia following a recent change in Saudi laws. Sidhique also shared the State Life's plans to further boost its presence in the UAE.
Siddiqi said State Life launched operations in Sharjah and Al Ain earlier this year to boost the company's life insurance business in the country. The State Life has 14,000 policyholders in the UAE and another 2,000 are expected to be added this year. It has added about 7,000 policyholders in the past three years, but even the 16,000 figure is not enough considering the huge potential in the country.
The Stare Life's fund in the Gulf region saw a steady growth in the past three years as premiums rose to $60m this year compared to $38m in 2008. The company is expected to raise $16m gross premium in the UAE this year compared to $13.49m in 2010.
© The Peninsula 2011
