By - Martin Rueegg, group CEO of LIVA Group
Over the years, the insurance sector in the GCC region has undergone a remarkable evolution. We have witnessed a significant shift from a mandatory and more traditional focus on motor and health insurance to a more diverse range of offerings. Today’s insurance players provide comprehensive coverage for health, life, and specialised sectors, tailored to the unique needs of diverse customer segments, with personalisation becoming a major focus.
in people to live the life they want, the way insurance solutions are built and delivered is evolving, and so are the products themselves. For example, driverless cars come with a very different set of risks than we have been used to with conventional cars, and the industry needs to respond to this change. HOW TECH IS TRANSFORMING THE SECTOR So how can insurance players keep pace with the ever-changing landscape? This is a simple yet difficult question. The most effective way is investing in advanced technology, combined with adopting a customer-centric approach. Innovation is at the heart of the industry. Technology makes customers’ lives easier while driving efficiency, transparency, and agility for insurers and partners. Digital channels allow customers to easily purchase policies, manage claims, and access support, providing them with unprecedented convenience and a seamless experience. Additionally, the integration of internet of things (IoT) devices enables companies to gather valuable data to gain insights into customer preferences and behaviours with the aim of developing even more personalised insurance solutions through accurate underwriting. Meanwhile, regular customer feedback and market research help them to proactively adapt to changing needs. Other topics, such as cybersecurity and data privacy, are very much at the centre of any insurance operation to ensure the utmost protection for policyholders.
According to research conducted by investment banking advisory firm Alpen Capital, the insurance industry in the GCC region is projected to grow from $26.5bn in 2021 to $31.1bn in 2026. This trend can be attributed to several key drivers. Firstly, the region’s expanding population creates an increased demand for insurance coverage across various sectors. Furthermore, regulatory reforms have created a more competitive landscape, attracting foreign investments and promoting innovation. The rising awareness of the importance of insurance among individuals and businesses, coupled with the region’s economic diversification efforts, has further fuelled the sector’s growth. While insurance companies will always retain the role of society’s risk managers that instil confidence.
Disruptive technologies are reshaping the industry as we know it. Artificial intelligence and machine learning algorithms have become integral in automating underwriting and claims processing, streamlining operations and ensuring faster service delivery. Moreover, the adoption of telematics and IoT devices allows insurance companies to offer usage-based policies and obtain real-time data for accurate risk assessment. Parametric insurance is a prime example of an area which disruptive technologies are truly redefining by supporting the creation of products that automatically arrange payments based on certain events. For instance, if a flight is delayed by more than three hours, the customers receive compensation paid straight into their bank accounts without having to do anything. A HOLISTIC APPROACH Today, the role of insurance players transcends risk transfer through an insurance contract. In this dynamic landscape, companies are starting to look beyond insurance to build holistic ecosystems of solutions that safeguard all aspects of people’s lives. Making data and information available to prevent events is just as important as insuring them. For example, insurers can share the insights gained out of the millions of records they have, providing support and guidance to people and organisations along their journeys. To remain relevant well into the future, insurance companies must serve as trusted partners to their customers, empowering them to navigate an ever-changing world with confidence.