The increasing adoption of technologies like artificial intelligence (AI) and blockchain is poised to revolutionize the insurance industry, enhancing efficiency and customer experience, according to a high-ranking executive.
“Customers can anticipate more impactful insurance services and interactions via digital channels, and digital insurance aggregator platforms will remain well-equipped to meet customer needs anytime, anywhere,” said Koy Nien Lee, CEO Designate of Protego, a newly-launched insurance aggregator and a subsidiary of RAKBank, in an interview with Khaleej Times.
Protego anticipates a steady increase in premiums, with both life and non-life segments expected to grow, particularly in health and motor insurance. This growth will be fueled by mandatory health insurance coverage starting in 2025, along with rising vehicle ownership and car insurance premiums, according to Lee.
“We also foresee certain emerging insurance segments gaining momentum. For instance, cyber insurance is experiencing heightened demand due to escalating cybersecurity threats. Additionally, life insurance products related to savings and pensions are becoming more popular as both the local population and expatriates seek broader financial protection. Ongoing regulatory reforms by the Central Bank of the UAE, including stricter solvency and capital adequacy requirements, are expected to bolster the insurance sector’s stability. These reforms will enhance transparency, customer protection, and support long-term growth,” he added.
Studies indicate that the UAE insurance sector is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.7 percent, expanding from $10.3 billion in 2024 to $12.4 billion in 2028.
Following the April rains, insurers in the automotive and property sectors faced business losses and legal challenges due to a sudden surge in claims. “Consequently, insurers’ ability to manage claims promptly is being tested. Providers that maintain financial stability and ensure timely claims payouts are likely to earn customer trust and brand recognition, as the historic rains have shifted customer preferences from premium affordability to a more balanced approach that includes confidence in claims handling,” Lee noted.
The recent Covid-19 pandemic has underscored the importance of health insurance. “The UAE’s health insurance market is forecasted to grow at a CAGR of 6.4 percent between 2024 and 2032, reaching $14.6 billion, according to one estimate. We are observing customers becoming more proactive in securing health insurance coverage, and insurers are responding with innovative benefits that address medical and treatment needs for such events. At Protego, we view this sector positively and plan to introduce our health insurance offerings in the near future, enabling us to serve customers and make a significant impact in another crucial segment,” Lee stated.
Protego anticipates that its affiliation with RAKBank will be advantageous for its growth. “We have proactively established partnerships with leading insurers in the market, ensuring that our customers benefit from competitive and attractive products, while having peace of mind regarding claims payouts,” Lee concluded.
