Panellists on the final MENA session from day one of DWIC 2019 talked about new product opportunities the region could see soon.
Eric Lafage, market manager at Scor emphasised cyber risk as a growing market for the UAE, following its take-off in other regions.
“I think cyber is definitely the main new product, I would say,” said Lafage.
Cyber is suffering from similar challenges as it has faced in other regions, such as the UK, he suggested – particularly a shortage of expertise on the risks.
“I think cyber is taking a long time to get started in the region because we need more expertise, such as being able to assess the risk and the quality of the IT system,” he said.
Lafage outlined telematics in motor as another line of business that has yet to fully take off in the UAE.
“There will be huge investments and huge value in this,” he said.
This was echoed by Asad Irshad, consulting actuary for Dubai at Milliman, speaking on an earlier panel session about innovation in Dubai.
“The UAE still lags behind on telematics,” he said, but suggested enhanced reporting requirements would drive better data and analytics within underwriting.
Telematics would also cut fraud in motor claims, he suggested, noting that it has now become mandatory in Italy, and has grown more popular in the UK, following more obvious incentives in place for customers.
Lafage highlighted another form of insurance that has not yet made it to the UAE market, but is popular in mainland Europe, especially Germany.
“Peer to peer insurance can also be expected to travel to this market very soon. We see it is becoming very popular in the European market. It is where you gather a group of people and insure that group. It could be 50 people you insure in one group.
“Everyone in that group pays a similar amount and as you are bringing a lot of business to the insurer, quite often a reward such as a discount is offered. I believe this will reach the region at some stage,” he added.