N O T I C E
Our Company – LIC (International) BSC (C), is a joint venture off shore company promoted by LIC of India (owned by Government of India) and registered in Kingdom of Bahrain. LIC International is licensed by Central Bank of Bahrain as a Life Insurance Company with a paid up capital BD 20 million.
LIC International started its operations in GCC in July, 1989 and has its Corporate Office in Bahrain. It has operations in Bahrain, UAE, Oman, Kuwait and Qatar. The operation of LIC (International) in Qatar began in November, 1999. Presently, our products are being distributed through Chief Agent, Dyarco International Group, which is a partnership between H.E. Sheikh Faisal Bin Qassim Al Thani of Al Faisal Holding and Mr. Ebrahim Al Neama of Al Neama and Sons Holding. The Chief Agent has a MBT (Ministry of Business and Trade) license to market Life Insurance products in the State of Qatar. Presently LIC (Int’l) does not have a branch license in Qatar.
According to new QCB law, it is necessary for an Insurance Company operating in State of Qatar to have a QCB license. QCB has also issued executive insurance instructions on 29.03.2016. The new regulations stipulates the licensing process for a branch of foreign insurance company. Now, since regulations are clear, LIC International wants to take QCB license for a branch in Qatar. We need professional services in preparing and submitting the following reports / documents for taking the QCB license and any other documents that may be required by QCB.
- Application in prescribed format along with all reports / documents required by QCB to register a branch of LIC (International) in Qatar.
- Application for regulated activities authorization.
- Application for approval of individuals.
- A detailed business plan.
- Well defined policies and procedures manual.
- Updated functional and organization structure.
- Regulatory gap assessment mapped to QCB requirement.
- ORSA and stress testing framework, policy manual and stress testing based on deterministic scenarios.
We seek proposals from Companies/Firms for providing assistance in obtaining a branch license for LIC (International) from QCB. The scope of work for the engagement shall include preparing all required documents in co-ordination with LIC International in obtaining the branch licence, which from our understanding shall include:
Development of Business Plan :
- Prepare a detailed business plan for a minimum period of three years that provides an outline of the structure of business to be undertaken and financial projections that demonstrate the adequacy of financial resources.
- Develop understanding about LIC structure, the background and strategy of the company, functions, operations, the current product and services.
- Conduct an analysis detailed as under:
Market data and analysis
- Analysis of economic and demographic trends impacting the Qatar life insurance sector, comprising of an assessment of historical, current and forecast figures for core macroeconomic indicators.
- Industry dynamics (size, growth, penetration, profitability / loss ratio, drivers of growth)
- Analysis of Qatar’s life insurance market (historical and projected market size, penetration, key industry drivers, etc.)
- Overall segment size, growth and key market drivers
- Demand assessment, demand-supply gap analysis
- Breakdown by segment / line of business
- SWOT analysis of Qatar’s life insurance market focusing on key challenges and critical success factors
Analysis of demand drivers
- Population demographics (size, growth, age, income, nationality, etc.);
- Quality and availability of healthcare;
- Overall country safety (political tensions, crime, number of car accidents on annual basis, etc.);
- Death rates
- Marital and family status.
- Profiling of key market players in the Company’s target segments to understand their offerings, distribution channel, positioning and strategy
- Assess overall competitive intensity across the life insurance segment including, product offerings and distribution channels
- Based on the above analysis and QCB guidelines, develop value proposition for the LIC Qatar branch and develop projected financial statements for a minimum period of 3 years. Carry out sensitivity analysis scenarios on the financial performance metrics by iteratively adjusting key variables.
- Formally issue the final report , incorporating any amendments suggested by LIC and QCB .The plan should reflect the proposed business lines and risk profile, giving details of projected setting up costs, capital requirements, staffing and organizational structure, projected development by business lines, solvency margins and reinsurance arrangements. It should also include information on the products to be offered and distribution methods to be used.
Compliance to regulatory requirements :
Review and Update the Policies and Procedures manual :
- Understand the LIC Qatar branch plan, authority matrix, operational activities, functional and regulatory requirement, etc.
- Review and gain understanding of the policies and procedures of LIC.
- Based on the above understanding and based on the regulatory requirements of QCB and international leading practices, review and update the existing business and support manuals and develop well defined policies and procedures so that LIC’s instructions and controls appear to be appropriate and sufficiently resourced to support, monitor and manage its affairs, resources and regulatory obligations soundly and prudently.
- The following policies and procedures manual will be reviewed and revised:
- Corporate communication
- Corporate governance
- Whistle blower
- Record Keeping
- Human Resource
- Risk Management
- AML and CFT
- Business continuity planning
- Code and business conduct
- Grievance redressal
- IT policies and procedures
- Finance and Accounts
- Internal Audit
- Business Operations
- Life Insurance
- Any other as per QCB requirement
Regulatory Gap analysis :
- Regulatory gap analysis of LIC home jurisdictions i.e. Central Bank of Bahrain to regulations of QCB. The objective will be to provide an assessment and satisfy QCB that the laws, regulation and standards applicable to LIC in its home jurisdiction are of an appropriate international standard and are consistent with those in Qatar. If there are any gaps, identify and advice on addressing those gaps.
ORSA and stress & scenario testing:
- Based on the QCB regulations, other regulatory requirements and applicable international leading practices, develop a well-defined ORSA and SST framework.
Preparation of Application pack:
- Prepare application for branch license, regulated activities authorization and approval of individuals in prescribed format provided by QCB.
- Liaise with LIC for any documents required for the application.
- Submit application in prescribed format along with all reports / documents required by QCB to register a branch of LIC (International) in Qatar, for authorization of regulated activity and for approval of individuals.
- Submit certified translation into Arabic or English of the application or any other document if the QCB so requests.
- Follow up with the QCB authorization team to ensure the submission of a completed application pack and to facilitate the expeditious approval of the application.
- If required, perform amendments to the submitted business plan, policies and procedures and other submitted documents, based on QCB’s feedback and in coordination with LIC.
Terms & Conditions:
- All necessary information and documents will be provided in English by LIC and all deliverables by consultant will be given in English to LIC. Consultant will submit certified translation into Arabic or English of the application or any other document on the request of QCB.
- The 25 % of fees to consultant will be paid on signing the agreement and 50% on submitting the application to QCB. Remaining 25% of fees will be paid on getting the branch license and authorization of regulated activity and approval of individuals.
Detailed proposal may be submitted in case any Company/Firm is interested to provide the above mentioned services.
The last date of receipt of application in our Qatar office (address given below) is 15th September, 2016:
Resident Manager, Qatar Branch
Life Insurance Corporation (International) BSC (c),
Dyarco Intercol Management Services, Twin Tower , Building No. 2, 1st Floor ,Office
no. 104, C Ring Road, Behind Qatar navigation Plaza, Near Toyota Signal, PO Box 3841, Doha Qatar
Mob: +974 33877183, Tel: +974 44142530, Fax: +974 44142518
CEO & Managing Director
LIC (International) BSC (C)
Kingdom of Bahrain