UAE: Health insurers set aside only 3% of budget for technology
Source: Middle East Insurance Review | Oct 2019
Less than 3% of the budgets of health insurers in general are invested in technology and innovation, according to Dr Saif Al Jaibeji, co-founder and chairman of Sehteq, which operates a technology-driven platform that allows consumers to choose their health insurance plans.
One key successful factor for insurers is a serious commitment to invest in technology and systems, he wrote in a recent article in the magazine Premium. Setting aside just 3% of the budget for technology is not enough, as it means that insurers might have to wait for years until a banking-like solution is available for insurance consumers.
He said there are more than 160 insurance broking companies registered in the UAE. Among them, 10 control more than two thirds of the total business.
“I believe aggregators such as souqalmal, yallacompare, bayzat and insurancemarket have a positive impact on the market, and this space will have to be regulated to encourage more legacy brokers to get into the digital and InsurTech space,” he said. M