The insurance sector in the UAE is accelerating the pace of digital transformation

Youssef Al Arabi (Abu Dhabi)

The insurance sector in the UAE is witnessing rapid changes in terms of digital transformation, benefiting from the high levels of corporate spending on technological solutions and the adoption of new technologies that have contributed to changing the features of the sector during the past two years, according to experts and officials in the sector.
They said that during the past period, many future digital tools have become indispensable necessities in insurance companies, which contributed to increasing the speed of completion and raising the concepts of accuracy and efficiency in the conduct of operations in the main insurance fields represented by “autos – health – engineering – marine”.
They explained that insurance technology was able to automate both underwriting and claims settlement processes, and data analysis techniques contributed to improving sales and supporting decision-making within companies, expecting an increase in the rate of employment of artificial intelligence technologies during the next stage, especially in the health insurance sector, to reduce document misuse. They pointed out that as the UAE continues its efforts to become one of the smartest countries in the world, the perception of new technologies and their integration across sectors, including insurance, will be the dominant feature during the coming periods. According to data firm Gartner, global IT spending within the insurance sector has reached $210 billion, with long-term spending expected to grow at a compound annual growth rate of 6.4% to $271 billion in 2025, driven by the growth of information technology services and software at a compound annual growth rate of 7.9% and 11.2%, respectively.

Digital boom
Muhammad Mazhar Hamada, Vice Chairman of the Higher Technical Committee of the Emirates Insurance Association and General Manager of Al Ain Al Ahlia Insurance Company, confirmed to Al Ittihad that technology has become a major contributor to raising the efficiency of underwriting and sales in insurance companies, explaining that the process of digital transformation in companies operating in the sector has witnessed an unprecedented boom. preceded during the last period.
Hamada pointed out that Al Ain Al Ahlia Insurance Company provides many digital services in terms of underwriting and claims settlement, and it also has a plan to complete the digital transformation of all its services by the end of 2023, explaining that at the level of health insurance there is great coordination to link the unified health file “My Care” with all health authorities in The United Arab Emirates, pointing out that the presence of a unified national digital file for the patient within the country is in the interest of the client, and will reduce the rate of misuse of insurance by 50%.

Claims management
For his part, Bassam Gelmiran, General Manager of Al Wathba National Insurance Company, said that insurance companies are keen to employ technology to communicate with their customers through their websites and smart phone applications that give customers the opportunity to contact the company at any time and from anywhere and obtain their documents without the hassle of visiting offices. Or move out of homes to get insurance.
He pointed out that Al-Wathba Company allows its customers to electronically subscribe to documents, as well as the ability to easily pay electronically, with the possibility of paying in easy installments and for long periods. Which reflects the mechanism of employing technology in sales operations and management of loyalty programs.
He noted that through insurance technology, the accident reporting service is provided through smart phone applications so that the customer does not bear the hardship of going to the insurance company, but rather opens the application, enters his document, records the accident and copies the necessary documents, and thus the accident report is opened and the claims department follows up the matter from without the need for the customer to make any effort.
The “Insurtech World” report indicated that 67% of insurance companies in the UAE are looking forward to cooperating with insurance companies specialized in insurance technology during the year 2020.
The Covid-19 pandemic has accelerated the pace of digital transformation in the health insurance sector in the United Arab Emirates, in conjunction with the rise of companies specializing in insurance technology, and their increasing cooperation with leading companies in this sector, especially with regard to innovations in customer service.

digital documents
Omar Al-Amin, CEO of Orient Insurance Group, said that insurance companies have focused during the past few years on employing technology to automate underwriting processes, claims settlement, and promoting documents through social networks, noting that employing technology has contributed to reducing labor costs and heavy expenses by 35%. What was positively affected by policyholders in terms of prices and quality of services.
He pointed out that Orient issues daily about 1,200 digital medical insurance policies, which is equivalent to the productivity of 60 employees.
He explained that the future brings with it many changes for insurance companies in the field of digitization, as self-driving cars and related technology will reduce exposure to accidents, which will lead to a decrease in insurance premiums by up to 90%, and “telematix” technologies to track cars via satellite. Make it difficult for cars to be stolen and transported from one country to another.

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