The
publication titled ‘UAE Online Insurance
Industry Outlook to 2024 – Driven by Customer Uptake, Ease for New and Renewal
Policy Convenience with Insurance Aggregators’ undertakes a comprehensive analysis of the insurance industry in UAE,
product-wise buying patterns of insurance among population, traditional
distribution channels including brokers, banks, agents, direct channels, etc
and further explore the under-penetrated potential of aggregator led online
insurance distribution. Following the path of European economies with high
penetration of online insurance (>60%), research answers the question if
aggregators are here to stay in UAE. Analysts have also depicted the general
business model, end to end online buying process, Typical Organizational
Structure and Technology stack integrated by such firms in the platforms. With
an extensive focus on Competitive benchmarking among major Aggregators
including Yallacompare, Souqalmal, Bankonus, and PolicyBazaar UAE, the research
concludes with some key recommendations for firms to focus on profitability,
expanding the model to the peer GCC countries, increased emphasis on other
banking products of loans, credit cards etc to ensure sustainable growth in the
coming years.
Where
does the Insurance Industry stand today?
GWP
collection stood at $12Bn, majorly led by growth in non-life insurance products
of Health and Motor. Insurance of Persons and Fund Accumulation contributed 28%
to total GWP collection. While UAE is ahead among the peer GCC countries in
terms of insurance penetration of 2.9%, it still lags behind the average
insurance penetration of emerging countries which stands at 3.2% and Global
average of 6.1%. Mandatory insurance requirements of Motor across UAE coupled
with Health Insurance in Abu Dhabi and Dubai has contributed to raising awareness
among people to protect their risks.
Traditional
Distribution Channels & Viability of Aggregator led Online Model
Challenging
the established dominance of Brokers, Banks and Agents are not easy for
Aggregators as incumbents generate ~99% of the total premium collection in
2018, as per the data released by Insurance Authority of UAE. However,
aggregators are stepping up due to the changing customer preferences towards
online, price comparison led to buying behavior. Relying on
commission-driven income and a high one-time cost of technology building for
offering multiple banking products, aggregator’s model is highly scalable to
peer GCC countries, thereby ensuring sustainable growth by becoming a one-stop
solution provider.
Are
aggregators here to stay?
Primarily,
targeting kin to commodity ‘Motor Insurance’ products, aggregators have
built-in AI-driven algorithms and platforms capable of generating quotes within
a minute and delivering policies in the e-mail within 60 minutes. This has
allowed customers to get away with the tedious process of submitting documents
offline and foster confidence owing to a lack of information asymmetry. Ken
Research believes online insurance could cannibalize the share of brokers and
banks and contribute >10% of total GWP collection by 2024.
Time Period Captured in the Report: -
Historical Period – 2014 -2019
Forecast Period – 2019 – 2024E
Companies Covered:
Yallacompare
Souqalmal
Bankonus
PolicyBazaar UAE
Compare4benefits
Insurancemarket.ae
Bayzat
Key Topics Covered in theReport:
-
Socio Demographic and Economic Outlook of UAE
Insurance Industry in UAE basis Products, Distribution Channel
Decoding Penetration of Online Insurance with a special focus on Aggregators
Business Model of Aggregators (Revenue Streams, Organizational Structure, End
to End Buying Process, Technology Stack)
Market Size of Insurance Aggregators basis Revenue and Aggregators
Competitive Landscape among major Aggregators (Cross comparison matrices,
strengths, weakness and company profiles)
Future Outlook of Insurance Industry
Potential of Insurance Aggregators in UAE
Key Analyst Recommendations
For
More Information on the research report, refer to below link: -
Related
Report by Ken Research: -
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