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The insurance industry is currently underserved and offers countless opportunities for expansion through increased awareness of insurance benefits, according to an industry expert.
Mufazzal Kajiji, CEO of Zurich International Life (Middle East), said the recent pandemic has increased awareness of life insurance, as around a quarter of claims are related to Covid-19. — photo provided
The life insurance business has gained momentum in the wake of the Covid-19 pandemic as more people choose to buy insurance to protect themselves against unseen risks, an industry expert said.
Mufazzal Kajiji, CEO of Zurich International Life (Middle East), said the recent pandemic has increased awareness of life insurance, as around a quarter of claims are related to Covid-19.
“I would also like to point out that the pandemic has completely changed the benefit claims landscape. In life insurance, Covid-19 was the second leading cause of life insurance claims over the past three years, with about a quarter of claims related to Covid-19 ,” Kajiji told Khalij timein an interview.
He added: “Due to growing awareness of health risks and life protection, coupled with increasing access to information and insurance solutions, I expect the demand for critical illness and life insurance to grow in the future.”
Recognized and Trusted Brand
Zurich International Life Limited is part of the Zurich Insurance Group, incorporated in the Isle of Man, licensed by the Isle of Man Financial Services Authority, and a branch established and registered in the UAE is licensed by the Central Bank of the UAE.
In the UAE, it is registered under UAE Federal Law No. 6 of 2007, which governs its activities in the UAE.
In Bahrain, it is licensed by the Central Bank of Bahrain, while the Qatar Financial Center Supervisory Authority authorizes its operations in Qatar.
“Zurich International Life (Zurich) has been present in the region for 35 years, providing life insurance, critical illness insurance and savings solutions to help clients plan and prepare for the future. We have also designed bespoke employee benefit solutions for our corporate clients programs to help them attract and retain the best talent through attractive employee benefit packages,” Kajiji said.
“Our extensive experience in the region has given us a deep understanding of the market and Zurich is now a recognized and trusted name in life insurance with a significant market share in the region. We also represent 30,000 of more than 1,600 companies in the Middle East employees administer workplace savings plans,” he said.
Future Growth Plan
According to Kajiji, Zurich International Life (Middle East) is taking several initiatives to expand its regional footprint.
“Over the next few years, our focus will be firmly on diversifying our product portfolio, forming strategic partnerships and increasing our customer acquisition goals,” he said.
“In the longer term, we want to expand our regional footprint and prioritize improving customer experience with several initiatives at group level. These include redesigning our products and digitizing the entire customer journey to improve convenience and accessibility .
“Similarly, we are exploring partnerships and affinities through digital channels or contributors,” he said.
The DIFC Employee Workplace Savings (DEWS) scheme, where Zurich Workplace Solutions is scheme administrator, is another important initiative for us, he said. This year, the scope and scale of the program was expanded to include employees of Dubai government entities,” he said.
“We see a lot of potential in the workplace savings proposition and look forward to expanding it to free zones and other private companies, not only in the UAE but also in other markets in the region,” he said.
core growth market
Kajiji said the company would improve its existing setup in some GCC countries, but had no immediate plans to open up new markets in the region.
“We plan to expand in the UAE, Bahrain and Qatar. Currently, we have no plans to enter new markets as the existing markets in which we operate remain underserved,” he said.
Responding to a question about the outlook for the insurance industry, he said that the insurance industry is currently underserved and presents numerous opportunities to scale by raising awareness of insurance benefits. More than half of the region’s population is under the age of 30, he said, suggesting that the insurance industry still has a lot of room to grow.
“In the case of critical illness coverage, awareness of emerging health risks and their impact on financial security is rapidly increasing. However, the vast majority of people are still not fully aware of the options available,” he said.
A common reason that deters people from buying insurance is the misconception that pre-existing medical conditions such as diabetes, obesity, heart disease or family history will result in applications or claims being rejected or substantially increasing the cost of premiums – when this is not the case, explains Kaggiji .
“To ensure more people are covered through our critical illness plans, we must continue to educate current and potential customers so they understand our products while communicating in an easy-to-understand language,” he said.
“In a survey we conducted with YouGov last October, we surveyed over 500 UAE respondents to find out how they would cope financially if they were diagnosed with a serious illness. More than 10 Six out of 10 respondents were very or extremely worried about getting seriously ill in the future.
“Nearly eight in 10 respondents were very or very concerned that a serious illness would deplete their savings, and more than half said they thought they would only last three months financially, facing a loss of income because of a catastrophe. serious illness,” he said.
Challenges of the post-coronavirus era
Kajiji also shared his strategies for dealing with the Covid-19 pandemic and said it has been a great experience to serve the people during this challenging time.
“As the pandemic started, like any other business, we faced certain challenges. However, we also had many opportunities for growth in the post-Covid world,” he said.
“For example, when it comes to savings, we have widely observed that more and more people want to find ways to do this and invest in it. This is partly driven by the UAE government’s promotion of savings, as seen in new initiatives such as the workplace savings scheme. driven by culture,” he added.
As previously mentioned, for DEWS, the UAE’s first funded and professionally managed EoSB programme, managed by Zurich and first launched in DIFC, the company has seen significant uptake and expects future growth as well.
“This partnership is a testament to our efforts to support the government’s vision to attract the best minds from the UAE and ensure it becomes one of the best countries in the world to live and work in,” he said.
“We’re also seeing overall health and wellbeing becoming a key priority for our clients. The pandemic has brought into focus the importance of wellness and ensuring prudent lifestyle choices and investments to help reduce preventable health risks.
epidemics, natural disasters
Regarding the impact of pandemics, natural disasters and climate change policy on the insurance industry, he said it was always important to cover risk factors to remain resilient during difficult times.
“Certain epidemics can be classified as ‘black swan’ events, negative events or events that cannot be predicted. Climate change and nature Disasters sometimes happen at the same time, but they are happening now. We are increasingly seeing climate modeling and risk being factored into future planning by governments and businesses,” he said.
Pandemics, natural disasters and climate change can all disrupt economic activity and seriously hamper social development efforts, he said.
“For the insurance industry, I see both opportunities and challenges,” he said.
For example, following the Covid-19 pandemic, many countries have made it mandatory for tourists to have travel insurance that includes Covid-19 coverage, leading to record growth in insurers. But at the same time, health insurance providers must also adapt and ensure contactless and digital services for customers, and expand telehealth service options, he said.
When it comes to climate change, and especially decarbonization — three countries in the GCC region have announced targets to achieve net-zero emissions by mid-century — a new business and risk landscape has emerged, and insurers must reinvent themselves, he said. Consider their long-term strategy.
“We need to better understand and assess the physical and financial risks of climate change, while taking a more forward-looking view under various climate scenarios,” he said.
new products, solutions
In response to questions about the launch of new insurance products, Kaggiji said that Zurich puts customer satisfaction at the top of its list and will do everything it can to protect them from risk factors.
“Over the next few years, our plans will revolve around integrating insurance products and solutions into our customers’ lives. As insurers, we believe that insurance must be more contextual and intuitive, while the customer journey should be more service-oriented, “He said.
Kajiji concludes: “Our energy will be directed toward raising community awareness and promoting Insurance-as-a-Service.”
— muzaffarrizvi@khaleejtimes.com
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