New technologies set to disrupt UAE insurance sector

The rising use of technologies such artificial intelligence (AI) and blockchain are expected to transform the insurance sector, improving efficiency and customer experience, according to a senior official.

“Customers can look forward to more meaningful insurance services and interactions through digital means, and digital insurance aggregator platforms will continue to be well-placed to address customers’ needs anytime, anywhere,” Koy Nien Lee, CEO Designate, Protego, a recently-launched insurance aggregator and a subsidiary of RAKBank, told Khaleej Times in an interview.

Protego expects a steady growth in premiums, with both life and non-life segments set to grow, especially health and motor insurance. This will be driven by mandatory health insurance coverage from 2025 as well as increasing vehicle ownership and car insurance premiums, Lee said.

“We also anticipate certain emerging segments of insurance to gain traction. For example, cyber insurance is seeing growing demand due to increasing cybersecurity threats. In addition, life insurance products related to savings and pensions are gaining traction as the local population and expatriates seek more diverse financial protection. Moreover, ongoing regulatory reforms by the Central Bank of the UAE, including stricter solvency and capital adequacy requirements, are expected to strengthen the insurance sector’s stability. These reforms will enhance transparency, customer protection and support long-term growth,” he added.

Protego expects that its connection with RAKBank to be beneficial for its growth. “We have proactively built partnerships with the leading insurers in the market, ensuring that our customers benefit from competitive and attractive products, while having peace-of-mind for claims payout,” Lee said.