A post Covid-19-driven growth in the insurance industry is likely to continue and is fuelled by the expansion of the larger UAE economy, said Mustafa O. Vazayil, managing director, Gargash Insurance.
The UAE’s insurance sector is growing at a rapid pace, with industry experts attributing the growth to the country’s overall economic expansion. In a recent interview, a leading insurance intermediary stated that the growth of the sector is a direct reflection of the economic growth of the country.
The intermediary, which has been operating in the UAE for several decades, is undergoing a complete overhaul of its business in order to keep pace with the rapidly evolving insurance landscape. The company is looking to fuel its next leg of growth by harnessing the power of artificial intelligence (AI) and other new age technologies.
“Insurance sector is a reflection of the economy. If the economy grows, the insurance sector grows. When an economy expands, industries expand, and their insurance needs expand. We are very positive about the next two-three years, especially for the UAE and Dubai. The rents are going up, and the real estate prices are rising. We (the UAE) are well placed in the region with world-beating infrastructure, which will allow us to play to our strength,” said Vazayil.
According to industry experts, the UAE’s insurance sector has been growing at a CAGR of over 12% in recent years, driven by a combination of factors, including an expanding population, rising levels of wealth, and the growing awareness of the importance of insurance among businesses and individuals. The sector is expected to continue its growth trajectory in the coming years, driven by the country’s ambitious plans to diversify the economy and promote innovation and technology.
The insurance intermediary believes that it is well positioned to take advantage of the opportunities presented by the rapidly growing sector, given its long-standing presence in the UAE and its expertise in the local market. The company is now looking to build on its existing strengths by embracing new technologies and investing in its human capital.
Speaking about the company’s plans, the CEO said, “We are committed to transforming our business and positioning ourselves as a leader in the UAE’s insurance sector. We believe that our next leg of growth will be fuelled by AI and other new age technologies, which will enable us to better serve our clients and stay ahead of the competition.”
The company has already begun to invest in new technologies, including AI and machine learning, which it believes will help to streamline its operations and improve the overall customer experience. The company is also looking to invest in its human capital by providing training and development opportunities to its employees, in order to build a team that is well equipped to meet the challenges of the evolving insurance landscape.
The CEO added, “Our investment in technology and our people is part of our broader strategy to position ourselves for long-term success. We believe that the future of the insurance sector in the UAE will be shaped by innovation and technology, and we are committed to being at the forefront of this transformation.”
Talking about the economy, Vazayil said: “Dubai is more or less insulated (from global recessionary impact) because the economy is not based on manufacturing. Oil price will perhaps fall a bit, but Dubai economy is well geared to attract surplus from the world. I do not see any severe impact from the global recession threat.”
The UAE’s insurance sector is expected to continue its growth trajectory in the coming years, driven by the country’s ambitious plans to diversify the economy and promote innovation and technology. The insurance intermediary’s commitment to embracing new technologies and investing in its people is a positive sign for the sector, and is likely to help it maintain its position as a key contributor to the country’s economic growth.
