A new report from PwC Middle East has highlighted several key trends that are expected to make an impact on the future of the Middle East’s insurance industry.
One of the key trends that the report addresses is how automation and artificial intelligence (AI), and how they are changing the way that insurers interact with consumers across the value chain, from product design to underwriting, pricing and claims.
Recent advancements in the digitisation of client interactions have included the growing use of bionic advisers that integrate human and digital client experiences
The report notes that technology has made it possible for life insurers to predict and intervene in health events based on a simulated digital twin of a customer.
PwC stated however that in order to thrive in the current industry landscape, insurers “must embrace” the digital revolution, and that the digital world will reward those who can “innovate and adapt quickly”.
Moreover, PwC highlighted that in order to remain competitive, insurers must also reimagine they ways how they serve their customers, provide advice, and capitalise on new partnerships.
The company pointed towards the ongoing growth of Insurtech’s as a strong example of addressing customer needs in real time by utilising data and new technologies to create tailored experiences and products.
While Insurtech’s are still within its early stages in the UAE, PwC noted that there are promising examples of insurers and start-ups working together to use new technologies for the benefit of customers.
Commenting on the report, Sanjay Jain, Partner, Financial Services and Insurance Leader at PwC Middle East, said: “Since the onset of the COVID-19 pandemic, the region’s insurance industry had to undergo massive transformation. In adoption to rapid digitisation and adoption of ESG standards, we expect to see more consolidation and M&A activity in the regional insurance industry as regulators continue to tighten their supervision regime particularly around capitalization / solvency. We also expect to see more product differentiation, with new products and features to be introduced in the market.
“As we look to 2025 and beyond, insurers must harness the momentum they have gained to meet a host of new difficulties. These include macroeconomic and structural headwinds, volatility and increase in interest rates, increased demands regarding climate risk, IFRS17 standards going live, and the exponential growth in digital innovation. Regardless of how insurers capitalise on these trends, they will need to reassess the future and reimagine their place in the world.”
