Despite strong regulatory frameworks and rising interest in digital solutions, resistance to change still exists, stemming from the use of, and familiarity with, outdated technologies and workflows.
According to Verisk SBS head of business development MENA Olessya Johnson, many organisations are only now starting to transition from these legacy systems toward more modern, integrated digital tools.
Verisk SBS notes that one of the most prominent hurdles in Middle Eastern insurance markets, including the UAE, is the continued reliance on email as the primary placement method, which is indicative of broader manual and fragmented processes.
A perceived shortage of high-quality historical and current data is seen as another barrier to automating or digitising processes across the insurance lifecycle.
While these various challenges create strong potential for the introduction of digital trading solutions, they can also contribute to early-stage hesitation, slowing the pace of adoption, Verisk SBS said.
Digital tools
Verisk SBS CEO Tim Rayner said that digital trading helps insurers trade as efficiently and effectively as possible.
“This means the introduction of digital placing platforms would certainly lead to a significant reduction in the time spent on manual tasks, such as re-keying data. By automating and streamlining processes across claims, underwriting and modelling, insurers free up their brokers and underwriters to focus on delivering value to clients and reaching key growth objectives, rather than getting slowed down and hampered by administrative tasks,” he said.
While the technology is fully capable of transforming these processes, the challenge lies in demonstrating to brokers, insurers, and other stakeholders across the insurance lifecycle just how much it can simplify their operations.
Despite the region’s reputation for rapid growth and innovation, technology adoption continues to lag, held back by inconsistent, unreliable data and concerns over the speed of implementation.
Although these barriers are gradually diminishing as users become more familiar with digital tools, further efforts are needed to accelerate progress, Verisk SBS said.
Verisk SBS notes that the UAE boasts strong regulatory oversight and digital systems can help insurers comply more efficiently by maintaining accurate, up-to-date records and automating reporting processes.
The creation of Sanadak, the region’s first financial ombudsman unit, further underlines the importance of transparency and accountability- objectives that digital platforms are well-placed to support.