Samples Business Qatar World Cup 2022 from Insurance Industry Perspective

Qatar World Cup 2022 from Insurance Industry Perspective

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The following is an interview conducted by individuals from the largest insurance companies, not only in the US but also in the world. The companies involved were MetLife and American International Group. The individuals outlined the insurance perspective on the world cup which is to be held in Qatar in the year 2022. The individuals interviewed were as follows. The first interviewee was Peter Zaffino, the Chief Executive Officer for General Insurance at American International Group. The second interviewee was Steven A. Kandarin, the Chief Executive Officer at MetLife. The following is the interview outline and analysis.

On an interview with Peter Zaffino (mobile number +1(917)443-6845, email: zaffino.peter@aig.co.us) regarding the perspectives of the insurance companies on the world cup 2022 in Qatar, he stated that the concerns in Qatar such as the unsuitability of soil for construction and insecurity are a major concern for the insurance companies within and without Qatar (Zaffino).

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Some of the insurance companies covering the preparations for the world cup in Qatar are Qatar Islamic Insurance Company, Qatar Insurance Company, Doha Insurance Company, and Qatar General Insurance & Reinsurance Company. The Qatar Islamic Insurance Company has won close to 80 percent of the insurance covers for the 2022 world cup. The Qatari soil has been deemed quite unsuitable for constructions. Most of it is lithosol which is shallow, and sand contains calcium carbonate. The construction sands in Qatar are usually Fluvial and Aeolian dune. Extensive analysis of the quality of sand was done by collecting the samples to gauge their suitability for the construction. Selective mining was recommended to enhance the quality of the construction in Qatar and especially in preparation for the world cup. Moreover, construction on the rocks has brought about concerns about the safety of such structures. The risks involved in construction on the poor soils involve damage to the structures and collapse of the same. In spite of the poor soils in Qatar, the insurance companies have gone ahead to insure the structures built in readiness for the 2022 world cup.

The following are the ways in which the insurance companies in Qatar such as Doha Insurance Company will cover the construction done on the unsuitable soils. The first insurance cover is Building Insurance on subsidence. Subsidence is the sinking of buildings due to earth movements not necessarily brought about by the weight of the constructed structures. The insurance companies will agree to pay for any repair due to damage by subsidence. However, it will not cover prevention of future subsidence of the building. The second one is Insurance coverage for defective workmanship. The insurer will provide a policy named Comprehensive General Liability (CGL) which will cover the defect claims in construction. This shows that the insurance companies in Qatar have a positive perspective about the preparation for the world cup even though soil issues are present.

Zaffino also expressed insecurity during the world cup as a major focal point for the insurance companies. He stated that there are alarming trends in the insecurity in Qatar. Qatar has been put in isolation by its neighbors allegedly for supporting terrorism. It has been said that Qatar is in support of the Muslim Brothers, a group that has caused Saudi Arabia and United Arab Emirates sleepless nights in the combat. Therefore, there have been increased fears that terrorist activities are likely to accompany the world cup in 2022 risking the lives of many people attending the world cup. In the recent past, Qatar’s media was blocked, and Russian hackers are said to have hacked the country’s website. These are a threat to the security of the country in the world cup.

Nevertheless, insurance companies in Qatar such as Qatar General Insurance & Reinsurance Company have a glimmer of hope in covering the security concerns in the event. The types of insurance present will be terrorism insurance and life insurance. Terrorism insurance will cover policies targeted at mitigating security risks posed by the aforementioned likelihood of terror gangs tampering with the peace of innocent fans in the world cup. Though expensive, the insurance will be essential, and hence it will be reinsured to backup before being sold to the consumers. Life insurance will come in handy in case the security problems lead to death of people. The policies will include the following. Standard life insurance policies that pay for death benefits regardless of the cause of death, term life policy that is usually for a term like 20 years and is renewable, and whole life policy that insures a consumer for their entire life. This shows that the insurance companies in Qatar are armed for the event in 2022 (Zaffino).

In an interview with Steven A. Kandarin (mobile +1(934)346-9078, email kandarin.steven@metlife.co.us) on the perspectives of the insurance companies on the world cup in 2022, Kandarin stated that the insurance companies were skeptical in insuring the construction as Qatar did not look ready for the event. He further stated that the insurance companies have to deal with pressing issues such as migrant workers in Qatar, and the construction in readiness for the world cup (Kandarin).

Insurance companies such as Qatar Insurance Company are working tirelessly to cover the immigrant workers in the construction of stadiums in the country. The migrant workers have been said to face a lot of problems. Many of them were tricked into coming to Qatar with the promises of securing office jobs only to end up in the construction sites with less than half the pay they had heard mentioned to them. The migrant workers live in squalid conditions in camps outside the towns and cities in Qatar. They are made to work long hours and paid less. They are prohibited from forming workers’ unions, and their travel documents have been confiscated until their contract ends. This is a form of modern slavery.

Insurance companies have come up with different types of insurance in an attempt to offer inclusivity of the migrant workers. The first type is the Migrant Worker’s Insurance. This covers their accidental death, disability, and medical evaluation. The other type is health insurance that enables the migrant workers to seek free medical services in public hospitals while they are working in Qatar. The Qatar 2022 world cup is estimated to cost around $200 billion. Out of this total cost, 30 to 40 percent will be utilized for insurance purposes of the world tournament.

Massive construction is taking place in Qatar in readiness for the world cup set to take place in 2022. A new airport is being constructed to handle the passenger traffic, stadiums with bugger capacities are being built to accommodate more fans, and a new city is being built to ease accommodation difficulties for the expected large numbers of people in Qatar due to the world cup. The projects have dispelled the fears of Qatar nit qualifying to host the world cup which has facilitated FIFA’s signal to Qatar to keep moving in readiness for the same.

Insurance companies, with their skeptical approach to the constructions aside, have made an effort to cover the construction of structures in Qatar. The first type of insurance that has been made available is the Builder’s Risk Insurance. This covers structures and the equipment used in the construction and renovation from damage. The other type of insurance is General Liability Insurance that protects assets of the construction business, bodily damage, damage to property and family workmanship. Qatar has also undertaken the world cup cancellation insurance costing over $2 billion. A cancellation insurance policy is offered by FIFA to cover any loss that may occur after the abandonment of the world cup event.

The abandonment of the event may occur because of many reasons including; world war, boycott, natural catastrophe, terrorism acts, and in the event that a country becomes unworthy of holding the world event. The cancellation insurance policy was established to prove that FIFA has enough trust on the organizing committee of the holding country, thus compensating the efforts made by the committee. Such types of insurance have made sure that the world cup taking place in 2022 is well covered in readiness for the same (Kandarin).

    References
  • Kandarin, Steven, A. Personal Interview. 10 Nov. 2017.
  • Zaffino, Peter. Personal Interview. 10 Nov. 2017.