The year is in full swing now. And with March comes the routine of getting into full gear as preparations get underway for the July renewals as well as GAIF in Tunisia this June.
The January renewals were termed as flat despite expectations that the big losses will see corrections. The reality bite is that there is overcapacity in the region deemed attractive by many because of its untapped potential.
Spring always adds a sense of hope for better things to come, and the insurance industry is working hard to embrace digital to expand its business every which way to get better spreads and new business too. Many complain that it is not keeping up with the global pace, but there is evidence of individual companies going that extra mile online and on social media, where one rides the tiger.
A must-read this month is Dr Kai-Uwe Schanz’ piece on maintaining insurers’ relevance in the digital era while coming to grips with cyber risks.
Our Cover Story this month is on the move towards closing the protection gap, with the Middle East having one of the lowest rates of penetration in the world, more so in life than in the general business. Health insurance with the compulsory regimes is doing much better than global average, though the returns are still questionable. The mantra is the same: “Insurers need to step out of their comfort zone, harness technology and embrace innovation”. It is the “how” that makes the difference.
Our Country Profile focuses on Abu Dhabi which, in many ways, is a market of its own in the UAE with its huge reliance on government-sponsored projects as well as corporate headquarter business. But with the move to reduce reliance on hydrocarbons as the main source of income, the equation is changing. Are the capital’s insurers ready?
In the world of reaching out to clients, in many ways banks seem to have it properly worked out with their omni-channel distribution ecosystem to meet customers’ new expectations of a digital experience. This will raise the bar for insurers as well as offer a window for insurers that can work out a deal with banks to reach customers. Banks with AI, VR and AR are on top of exploiting technology.
On the takaful front, we look at the magic of distribution to leapfrog and reach out to meet rising expectations of clients and use social media prudently and cleverly turn footfalls into actual sales. There is magic out there on the net. Get social but have a real strategy and not just add digital to old ways.
March is also the time to celebrate International Women’s Day. We take a look at the progress made to promote women’s status economically and professionally in the insurance sector and note that it is still an uphill task for females to get into senior positions. There are some who have made it, but the numbers are low. We also bring you a timeless adage from an industry veteran lady on the power of socialising to stay healthy in business beyond just networking.
I take this opportunity to wish you all the very best of March. Be steady in the digital march to success.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review