It is April and takaful takes centre stage with the World Takaful Conference still drawing in the numbers to Dubai. And while many still question the model’s efficacy, Lemonade, launched in New York, has made heads turn and hailed as the next big twist. Its business model, to take an upfront management fee and share profits with the various chosen charities of policyholders, is seen by takaful old-timers as blatantly similar, minus the “religious element”. But Lemonade of US origin went the whole tech-hog and made headlines with claims assessed and paid in 3 seconds, (yes, seconds, not minutes) all with use of AI. So the standard has been set – like it or not – even if the 3 second timing was a one-off fluke incident.
Our Cover Story on takaful this issue zeroes in on Version 2 with a great emphasis on InsurTech and data protection. The 12th WTC, with its theme as “Stability, Authenticity and Technological Transformation”, gets a chance to nudge the takaful players to raise the bar. Will takaful operators be ready to embrace V2 to make the business sustainable across life and general and across Asia, the Middle East and the world? Social media and mobile apps have made microtakaful a very viable option across Africa too.
Still on the tech-beat, we bring you an elaborate crop of stories on the advent of driverless cars and how they are set to change the motor insurance market. Will motor insurers become redundant? Who will the insured be: car owners as there are no drivers? The car maker? Or the software guys? Who will ultimately drive the motor insurance market?
Our Market Profile this time is on Dubai with the reality that it is still soaring to new heights. Even the sky doesn’t seem to be the limit for Dubai with compulsory health proving to be a great beanstalk. More players are coming to Dubai where hope springs eternal. The DFSA is even looking at strengthening Dubai’s FinTech proposition, a welcome move for those who feel that the region is lagging behind the innovation curve globally.
Interestingly despite the uncertainties in the oil and gas and energy sectors, insurers in that sector seem to be holding the fort well with one even getting a second wind with diversification energy.
Throughout the region, the market seems to be growing, but there is the continued expectation of more guidance from supervisors with some believing that regulators can lead the business to higher profitability. The key stress in the region is still the extreme competition in the market. Despite the global wave of M&A, there are still too many players in the market chasing the limited premium pie. Solidarity, old business ties and old boys’ network still hold sway.
It is April, and we launch our 4th Middle East Insurance Industry Awards (MIIA) to keep the momentum going to recognise and salute excellence in the region. The MIIA, the most coveted in the region, is the only awards supported by the DIFC, DIFC IA, FAIR and GAIF. The awards, with a transparent process and defined criteria, are independently audited and served by a distinguished panel of industry leaders as judges.
So, stand up and dare to show yourself as being different and excelling in your business to be worthy of the Award. Send in your nominations now! In business, it is a faux pas not to blow your own horn.
The very best of April to all our readers.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review