The insurance salesperson is history- Say hello to Insurtech
Forget the days when insurance salespeople call and drop unannounced at your doorstep, hoping you hear and believe their version of why their insurance company and rates are the best.
The fintech sector in the Middle East, despite being relatively small when compared with the likes of the US or Europe, has grown tremendously these past years with locations such as the UAE, but also Egypt, Jordan, and Lebanon emerging as regional fintech hubs.
Insurtech in the GCC is quickly becoming a force to be reckoned with.
Aqeed.com, a new UAE-based insurtech platform, says it’s a technology company focused on helping consumers understand, manage, and buy insurance on their platform, with plans to expand to Saudi and other Middle East markets, according to Entrepreneur, a local industry site.
The business was launched in April 2018 and has successfully raised $18 million in funding with the promise to quickly morph a conventional sector into a digital one.
Image credit: Aqeed.com, courtesy of Entrepreneur —- Left to right: Aqeed Chief Product Officer Hadi Radwan and CEO Rachid Abi Nader.
The business will invest heavily in bringing the latest insurtech innovation- “from artificial intelligence, machine learning, internet of things (IoT), telematics, as well as business process enhancement and automation,” reported the Entrepreneur.
Having Aqeed allows customers to buy and compare car insurance in a matter of minutes on their platform, using a dashboard that’ll allow them to access documents and policies, contact insurance companies, view how much they are paying, and get notified of their upcoming renewal dates.
“The team is also planning to add home and travel insurance products to the portfolio soon, said the tech site.
Moneysupermarket, is one UK price comparison site for loans, mortgages, credit cards, and home and car insurance quotes, in a market thriving on customers’ needs to switch to service providers more in tune with their digital needs.
Founded in 2015, Democrance is an insurtech startup that partners with insurance companies and mobile operators to offer insurance products to the underserved micro-insurance market in the Middle East and North Africa.
The company raised $800,000 in October 2017 and recently secured a $500,000 grant to develop a sustainable micro-insurance model that provides insurance protection to low-income group migrants working in the UAE.
Growing GCC insurance and insurtech market
the GCC insurance market grew at 12% from $14.8 billion in 2011 to $26.2 billion in 2016, according to Alpen Capital, a leading investment bank.
“Rising population, expanding construction activity, mandatory lines of business (particularly medical and motor insurance) and improving regulatory environment were the key enablers of growth, said Alpen Capital.
The prominent business lines in the GCC insurance market are motor, health and property/fire.
The UAE and Saudi are two of the largest insurance markets in the GCC, accounting for 39% and 38% of the region’s insurance market in 2016, respectively.
Insurers are developing customer-centric strategies and adopting an omnichannel model to engage with these tech-savvy customers
“Going forward, we see technology playing a key role in the way insurance is marketed to individuals with smartphones and social media likely to emerge as primary marketing channels lowering acquisition costs in the process, said Alpen Capital.
“Moreover, the use of smartphones and need for personalized solutions have led to innovative insurance distribution platforms like online websites of insurers, on-demand usage-based insurtech startups, online peer-to-peer startups and insurance management sites for small businesses.”
Technological advancements disrupt operational frameworks, but generate additional premiums, optimize costs, improve efficiency, engage with customers, increase governance and identify risks.
Data is gathered through connected devices such as smartphones, smartwatches, smart fridges, telematics in cars and sensors at home and are combined with analytics that assist in gathering insights and pricing of premiums.
The projected market size of the insurance industry in the GCC from 2016 to 2021 shows the value of gross written premiums of the GCC insurance industry is forecasted to grow to around $44 billion.
Courtesy of Statista (www.statista.com)