Embracing on-demand insurance
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Embracing future growth through digitsation CHANGING REGULATIONS ARE RESHAPING THE TRADITIONAL INSURANCE MARKET. RENOWNED FOR ITS EXCEPTIONAL SERVICE DELIVERY AND CUSTOMER FOCUS, UNION INSURANCE HAS DIGITISED ITS SERVICES, FULLY CEMENTING ITS POSITION IN THE GCC WRITTEN BY
CATHERINE STURMAN PRODUCED BY
CRAIG DANIELS
w w w. u n i o n i n s u r a n c e . a e
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T
he United Arab Emirates (UAE) is moving away from its dependence on oil and is seeking to diversify its
economy within healthcare, transport and logistics, energy, tourism, and of course, its insurance services. Covering all industries, the GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021, bolstering the economic growth of the region and its citizens. New digital tools and complex regulations will seek to further drive the growth of SMEs and large corporations, enabling businesses to cater towards its evolving client demand. 04
Licensed by the UAE Insurance Authority and listed on the Abu Dhabi Securities Exchange, Union Insurance has sought to transform the customer experience. Appointed over two years ago, Anshul Srivastav, Chief Information Officer and Digital Officer, explains that the industry’s focus on the customer has been significantly isolated from the customer experience in recent years. “The insurance sector definitely takes a backseat in terms of customer experience,” he says. “My role is someone who is a technology transformation leader, where I have completely transformed the way Union Insurance has operated on the IT side with my team, looking at various aspects including the
“ CLOUD HAS ENABLED US TO PROVIDE ON-DEMAND TYPE SERVICES. WE’VE CONVERTED IT INFRASTRUCTURE AS A UTILITY, WHERE SIMILAR TO WATER OR ELECTRICITY, CUSTOMERS PAY FOR WHAT THEY CONSUME” — Anshul Srivastav, Chief Information Officer and Digital Officer
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w w w. u n i o n i n s u r a n c e . a e
Enabling a smarter today Etisalat Digital is a business unit of Etisalat helping to drive digital transformation by enabling enterprises and governments to become smarter through the use of the latest technologies. It’s no longer the big beating the small, but the fast beating the slow and the smart taking the lead.
For more information, visit etisalatdigital.ae
Click to watch: Union Insurance provides more than just protection 07
current inventory and future inven-
FACT
tory of things that need to be done.
The GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021
“The first role was to change the way things were working in the region and to look at how the market is. Working closely with businesses, in terms of how things are and how things are going to be
end-to-end experience of the cus-
done moving forward.”
tomer, from buying a particular product and ensuring products
ENHANCING THE
are serviced, the company has
CUSTOMER EXPERIENCE
revamped its online presence and
By convincing Union Insurance’s
branding, leading to the eradica-
management team to explore the
tion of its paper-led processes. w w w. u n i o n i n s u r a n c e . a e
“Through our mobile app, we started enabling customers to
through implementing robotic process automa-
help themselves. We then decided
tion (RPA). The number of steps taken to complete
to go paperless,” explains Srivastav.
a process in terms of selling and soliciting should
“With all banking services and financial, products are
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“We have also automated a lot of processes
be reduced. Additionally, we have berisat blockchain, particularly on the documents side.”
paper. Their promises are on
Union Insurance is becoming increasingly
paper, whether it’s currency,
proactive as a result of its digital transformation
a policy or ATM receipts. We now
and has sought to garner a deeper understand-
scan information and our policies
ing of the needs of its customers, placing them
are saved electronically.
firmly at the centre.
“Most customers are not very clear on what
best services and products, miti-
they want and what they’re looking for. When
gate potential risks and protect
reaching out to the customer, whether it’s for a
their coverage.
product or a service, we have to create a journey for them. Customer engagement is very impor-
DIGITALLY ENABLED
tant to alter the entire lifecycle journey,”
Engaging with customers on a
observes Srivastav.
variety of digital platforms, such as
By engaging with customers, Union Insur-
mobile and online, customers are
ance has also sought to gain further
now able to purchase life, health,
understanding of customer age, demographic,
and motor insurance at their own
nationality and preferences, in order to offer the
convenience. Bolstered by the
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w w w. u n i o n i n s u r a n c e . a e
introduction of artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors by bringing new solutions to the market at a rapid pace. However, such changes would not have been possible without the
“ ON-DEMAND INSURANCE IS GOING TO BE GAME CHANGER, ESPECIALLY IN LIFE, HEALTH AND P&C INSURANCE” — Anshul Srivastav, Chief Information Officer and Digital Officer
adoption of cloud technology and the business’s focus on data virtualisation. Srivastav explains that this has been a major game changer. “Cloud has enabled us to provide 10
on-demand type services. We now don’t invest in IT prefecture but pay per use, similar to on-demand. It’s like the ‘Uberisation’ of insurance. We’ve converted IT infrastructure as a utility, where similar to water or electricity, customers pay for what they consume. “It has helped us bring products
strengthen Union Insurance’s security services,
to market quicker. When we come
the company has also partnered with Amazon
up with a new product or service,
Web Services and Microsoft, who jointly man-
we don’t have to wait for eight to 12
age its cybersecurity operations 24/7.
weeks to get our IT prefecture
Developing tailored products and services,
commissioning set up. It has now
whilst looking at the commercial impact
been reduced to a couple of hours.”
such decisions will have on the business,
Whilst the adoption of cloud technologies has sought to
Union Insurances’ investment in data analytics cannot be underestimated.
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“People don’t buy insurance, it is sold. People
insurance, travel insurance and
preferably go for mandatory insurances. In the
shop insurance, everything under
UAE, motor and health insurance is mandatory,”
the sun can be insured.”
explains Srivastav. “When looking at other parts of insurance, we
LONG-TERM EVOLUTION
need to have the data to understand what both
As the insurance industry
corporate and individual customers are looking
continues to mature, competition
at and what products are helpful to them to pro-
amongst providers remains fierce.
tect themselves. From fire insurance, home
Technology giants such as Google w w w. u n i o n i n s u r a n c e . a e
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FACT
Introducing artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors
and Amazon have also sought to expand their diverse portfolios and tap into countries with denser populations and long-term potential. As a result of new laws coming into force in the GCC, all individuals will be required to purchase compulsory medical insurance. Consequently, the GCC insurance industry is set to rise in the next five years – medical insurance presently accounts for approximately 40% of the GCC insurance market. The adoption of life and non-life insurance products also remains on the rise due to the growth of lifestyle diseases and a changing demographic. “Technology players are entering insurance. They will not come as typical, traditional insurance companies, but will offer real-time insurance where they will use the power of data,” notes Srivastav. “Google can see where you are and where you are calling from. In real-time, they can offer certain insurances to prevent the risk of a call drop, for example. On-demand insurance is going to be a game changer, especially in life, health and w w w. u n i o n i n s u r a n c e . a e
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“ TECHNOLOGY PLAYERS ARE ENTERING INSURANCE, ESPECIALLY ON THE HEALTH SIDE. THEY WILL NOT COME AS TYPICAL, TRADITIONAL INSURANCE COMPANIES, BUT WILL OFFER REAL-TIME INSURANCE WHERE THEY WILL USE THE POWER OF DATA” 14
— Anshul Srivastav, Chief Information Officer and Digital Officer
property and casualty (P&C) insurance. “Also, paying per mile insurance,
“China has also become a significant area of long-term potential. Zhong An,
where you pay insurance on the amount
who started their insurance journey
that you drive, is already in Europe and
in 2013 have recently had an IPO and
gradually coming into the other parts of
are a pure digital player. They have
the world. A lot of driving behaviours are
630 products in China and have sold
captured and bases the rating of insur-
over 8bn policies. If I look at the popu-
ance offered.”
lation of China, which is one and a half
Globally, countries with ageing
billion, every person is purchasing four
populations and an evolving demo-
products, through high-level calcula-
graphic, such as China, will be on the
tion,” Srivastav says.
receiving end of an insurance boom.
“They are clearly doing what others
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are not doing and are growing rapidly.
evolving market, the company will
Their use of data, wherein they engage
remain a key player within the Dubai
with the customer, they understand
insurance market.
their real time needs, and they offer the
“With our retail-focused products,
protection or cover of what a customer
we’ve done some substantial work in
is looking for, is essential.”
terms of using technology to reach out
Union Insurance has taken a grand
to existing and potential customers
step to reach its direct customers and
through our digital channels,” Srivastav
its partners to ensure that it delivers the
concludes.
best products and services for custom-
“We’re seeing a good traction and
ers in real-time. Predicting the
conversion coming in and it’s adding up
behaviours of its customers, with an
to our revenues in great detail.” w w w. u n i o n i n s u r a n c e . a e
Head Office Single Business Tower Sheikh Zayed Road P.O Box 119227 Dubai, United Arab Emirates T +971 (04) 3787 777(764) info@unioninsurance.ae www.unioninsurance.ae