The rising use of technologies such artificial intelligence (AI) and blockchain are expected to transform the insurance sector, improving efficiency and customer experience, according to a senior official.
“Customers can look forward to more meaningful insurance services and interactions through digital means, and digital insurance aggregator platforms will continue to be well-placed to address customers’ needs anytime, anywhere,” Koy Nien Lee, CEO Designate, Protego, a recently-launched insurance aggregator and a subsidiary of RAKBank, told Khaleej Times in an interview.
Protego expects a steady growth in premiums, with both life and non-life segments set to grow, especially health and motor insurance. This will be driven by mandatory health insurance coverage from 2025 as well as increasing vehicle ownership and car insurance premiums, Lee said.
“We also anticipate certain emerging segments of insurance to gain traction. For example, cyber insurance is seeing growing demand due to increasing cybersecurity threats. In addition, life insurance products related to savings and pensions are gaining traction as the local population and expatriates seek more diverse financial protection. Moreover, ongoing regulatory reforms by the Central Bank of the UAE, including stricter solvency and capital adequacy requirements, are expected to strengthen the insurance sector’s stability. These reforms will enhance transparency, customer protection and support long-term growth,” he added.
The UAE insurance sector is set to grow at a CAGR of 4.7 per cent, expanding from $10.3 billion in 2024 to $12.4 billion in 2028, studies show.
Following the April rains, insurers in the automotive and property segments faced business losses and legal challenges as they had to handle a large and sudden influx of claims. “As a result, insurers’ timely claims management responses are being put to the test. Providers that are financially stable and continue to ensure that claims payouts are honoured in a timely manner stand to gain customer trust and brand recognition, as the historic rains have shifted customers’ preference from premium affordability towards being more balanced against claims confidence,” Lee said.
The recent Covid-19 pandemic has brought the importance of health insurance to the fore. “The size of this market in the UAE is predicted to expand at a compound annual growth rate (CAGR) of 6.4 per cent between 2024 and 2032 to reach $14.6 billion, according to one estimate. We are seeing customers become more proactive in seeking out health insurance coverage, and insurers have responded with new benefits innovation that covers medical and treatment needs for such events. At Protego, we view this space favourably, and we will be putting forward our health insurance proposition in the near future, helping us serve customers and make an impact in yet another key segment,” Lee said.
Protego expects that its connection with RAKBank to be beneficial for its growth. “We have proactively built partnerships with the leading insurers in the market, ensuring that our customers benefit from competitive and attractive products, while having peace-of-mind for claims payout,” Lee said.