PC: FortuneIndia
With technologies such as AI and blockchain increasingly being adopted, the UAE’s insurance industry is in for a transformation that will not only improve efficiency but also enhance the customer experience. According to Koy Nien Lee, CEO Designate of Protego, an insurance aggregator newly launched by RAKBank, insurers would then be in a position to provide more personalised services through digital channels.
Future customers can now look forward to more meaningful insurance services and interactions through digital means, said Lee. He added that digital insurance aggregator platforms will again be well-positioned to address customer needs, “anytime, anywhere.”
Protego expects steady growth in both the life and non-life premium portfolios; on health and motor insurance, though, Lee attributes this growth to mandatory health insurance coverage, which starts next year, 2025, and an increase in vehicle ownership and increasing car insurance premium.
Lee said that other segments that we expect to gain traction are new, emerging ones in insurance, such as cyber insurance, which is clearly being more demanded due to the cybersecurity threat. Savings and pension life insurance products are also gaining popularity, not only with locals but also expats, who are looking for greater protection of their financial assets.
Regulatory Reforms and Market Growth
Industry studies indicate that the insurance sector in the UAE will grow to a compound annual growth rate of 4.7%, from $10.3 billion in 2024 to $12.4 billion by 2028. This is also supported by regulatory reforms persistently being initiated by the Central Bank of the UAE.
These reforms, which include higher solvency and capital adequacy requirements, are also going to strengthen the stability of the insurance sector. Lee said that the reforms promote transparency, protect the customer, and have pro-growth for the long term.
Impact of Natural Disasters and Claims Control
Besides business losses and legal battles, insurer companies in the automotive and property sectors face these amid claims, especially now that claims are pouring in as heavy rainfall floods covered a large area in April. According to Lee, “time-to-settlement” will become crucial for insurers in maintaining trust among customers and building brand recognition.
Lee said the historic rains have shifted customers’ preferences from prioritising premium affordability to seeking more balanced options that offer confidence in claims payouts.
Health Insurance: A Growing Market
After the Covid-19 pandemic, health insurance awareness has been on the rise, and subsequently, the UAE health insurance market is expected to grow at a CAGR of 6.4% during 2024 and 2032 to $14.6 billion. Protego is preparing to venture into health insurance soon to meet the demand for coverage of increasing medical as well as the treatment costs.
Lee said that customers are getting more assertive in seeking health insurance coverage, and health insurers are reeling out new innovations in benefits.
Partnership with RAKBank
This partnership with RAKBank is going to be central in Protego’s growth. Lee said that they have proactively built partnerships with the leading insurers in the market, ensuring that their customers benefit from competitive and attractive products, while having peace of mind regarding claims payouts.
It joins emerging segments, and technology entails new advancements in the insurance industry that Protego seeks to be on the front lines of delivery through digital solutions meant to meet the needs changing with UAE consumers.
