Every crisis is an opportunity for something. The adage has come true for Insurtech companies at a global scale, and the UAE is not left far behind. The covid-19 pandemic brought the world to a screeching halt, but it also opened the window for innovative and solutions-driven ventures. Even before the pandemic, Insurtech was making inroads into traditional insurance marketing practices, but the global health crisis has sped up the process. Insurtech means the adoption of digital technology in the traditional insurance model of operations. Insurtech business has seen massive growth in recent months due to the twin factors of a string of new startups entering the field, and the spurt in consumers’ embrace of digital technologies.
Digitalization of Traditional Model
- Significance of Big Data, AI & ML Capabilities
Data is the core of Insurance and the embedded functionalities. The data processing, data management of tons of data each day is something the insurance sector handling and leveraging the scope of digital technology. The Insurtech companies in the UAE are leveraging the enhanced capabilities of Artificial-Intelligence (AI) and varied NLP Chatbots and Machine-Learning (ML) algorithms to take care of inherent insurance processing such as underwriting decisions, managing risks in a smarter way, fraud detections, and most importantly assuring enhanced customer-experience.
Sifting, analyzing a bigger volume of documents, locating discrepancies, giving the accurate and instant output is possible by an AI-driven software adopted by Insurtech companies. Claim-processing also is now a smooth function owing to the automatic updating of databases thanks to AI-driven platforms! Handling of customer accounts, background checking of prospects, determining accurate pricing offers, Claim-processing, etc. are smoothly done using the AI & ML powered platforms.
- IoT Devices
Insurtech companies leveraging the IoT capabilities in varied domains. For example, in the health-insurance field, Companies, and customers, are at the receiving end,i.e. seamless experience. The Insurtech companies extract accurate data from varied health-monitoring IoT- devices linked to patients’ claim processing, underwriting, and so on. These data also help them identify genuine prospects, validate claims and their authenticity. Even customers are gaining out of the Insurtech model, like transparency and pure visibility in their stages of processing are there. Online connection using digital tools is something Insurtech companies in the country are encashing at their best!
Latest Research on Insurtech
The outlook for Insurtech looks very bright for the UAE markets with several new players entering the field.
The findings of a global Insutech report has come as a shot in the arm for the nascent industry. The World InsurTech Report 2020 underlined the impact of Covid-19 in accelerating the digitalization of the insurance industry. The research conducted surveys and interviews in 26 top markets of the world that included the UAE. The report found out that almost 67 percent of insurers wanted to collaborate with the Insurtech companies. Insuretech, themselves showed a deep desire to collaborate with technology providers with as many as 85 percent of respondents ticking on the idea. The report also laid out 83 percent of Insurtech who wanted to partner with insurers. These numbers show that the demand for collaboration between the insurance companies, and big technology companies have matured during the Covid-19 pandemic.
Attracting Customers Digitally
According to some leading Insurtech providers, insurance companies have no option but to attract the customers digitally and also provide the services via the digital platform. They feel the days of customers physically visiting the insurance centers are long gone and thus the companies need to innovate and invest in technology. One example of innovation in the UAE market is Hala (launched by Dib). It is amongst UAE’s first few car-insurance companies that help customers buy car insurance and other products online.
Another major event in the UAE insurance market was the recent partnership between AXA Green Crescent Insurance Company (GCIC) and Policybazaar which is a leading insurance comparison platform in the Middle East. With this handshake, now the customers in the UAE will be able to compare best insurance policies online and also buy via Policybazaar’s portal.
If you are a startup or a company in the insurance industry who would like to visualize how technology can be an enabler and accelerator for your business, Contact us know more