QFC Consultation On Short Term Life Policies

In January 2010 the Qatar Financial Centre Regulatory Authority ("QFCRA") issued Consultation Paper 2010/01 ("Paper") inviting comments in relation to possibly allowing general insurers to offer certain short-term life insurance policies in or from the Qatar Financial Centre ("QFC").

The QFC Financial Services Regulations ("FSR") categorise certain types of insurance as either "general insurance" or "long term insurance" (ie life insurance). The QFC, as with many regulated jurisdictions, prohibits insurers from offering both general and life insurance products from the same entity ("composite insurers") except in limited circumstances. The exception to this general prohibition relates to a life insurer's ability to offer 2 categories of general insurance: accident and sickness. An insurer that wants to offer both general and life insurance is required to establish two separate entities for the two different categories of products.