23 April 2014 Insurance

Liberty appointed lead reinsurer on Qatar Rail project

The Liberty syndicates at Lloyd’s will lead the reinsurance programme on one of the largest ever single project tunnelling and rail construction insurance policies ever.

The project, by Qatar Rail, has been awarded to a six-member consortium of insurers led by Qatar Insurance Company. The broker on the programme is Marsh.

The rail company is overseeing the construction of the country's integrated railway network. The 231 km Doha Metro will form an integral part of Qatar's overall railway network. This is the largest insurance programme on infrastructure in Qatar and one of the largest risk covers related to railways ever placed in the world.

The consortium will provide construction all risks and third party liability insurance to Phase 1 of the Doha Metro Project.

The other five members of the consortium are: Qatar General Insurance and Reinsurance Company, Al Khaleej Takaful Group, Doha Insurance Company, Qatar Islamic Insurance Company and Al Koot Insurance and Reinsurance Company.

QFC-registered companies Doha Bank Assurance Company and SEIB Insurance and Reinsurance Company also participate on the programme.

In total 80 percent of the risk will be retained by domestic insurance companies. The lead reinsurer is Lloyd’s syndicate Liberty and the broker appointed by Qatar Rail is Marsh.

“We, at Qatar Rail, believe that a strong public private partnership (PPP) will further strengthen the domestic economy and our model translates Qatar National Vision 2030 into achievable actions through our projects that are essentially based on PPP," said Abdullah bin Abdulaziz Turki Al Subaie, the managing director of Qatar Rail.

Saad Al Muhannadi, chief executive officer of Qatar Rail, said: "The significant participation by the local players in this major insurance programme demonstrates the strength of the domestic risk cover market and their potential to make robust contribution towards the overall economic development.”

Ali S Al Fadala, senior deputy group chief executive officer of QIC Group, added: "The national insurance industry has the capabilities to handle large scale projects of any size and complexity and provide services of highest standards to its clients.”

Jon Marsh, vice chairman of global construction practice at Marsh, said: “Marsh take great pride in our appointment to this prestigious role, which is the beginning of a significant partnership and journey.”

Prasad Aniyil, chief executive officer of Marsh Qatar, added: "It was yet another opportunity for Marsh to demonstrate our commitment to Qatar, its insurance market and the Qatar National Vision 2030."

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