“The greatest discovery of all time is that a person can change his future by merely changing his attitude”, this saying by Oprah Winfrey outlined the tendency of Mr. Andrew Smith, the CEO of Yas Takaful, to change the ‘status quo’ in order to build towards a better future of the insurance sector.
In this regard, and amidst a number of changes occurs during the acquisition from Al Hilal Bank and the renaming of the Company from Al Hilal Takaful to Yas Takaful.
For Mr. Smith, the year 2022 was full of challenges and local competition, nevertheless, he has a pragmatic view for 2023 that may bring some new positive prospects.
* What is your assessment of the insurance sector during 2022 at the local, regional and international levels?
The year 2022 has been quite challenging, with increasing competition based on a pricing model, we are starting to witness changes in the industry. We have witnessed a number of companies merging or being acquired which is long overdue but will ensure a stronger and more robust industry in the years to come. As we approach 2023, I have cautious optimism that the industry will start a journey to improved business performance. From my perspective, the fundamental challenges remain, but we have to ensure appropriate technical pricing and profitability, although there remain many actions to be taken. During 2023, I anticipate some improvements in the performance of the insurance companies, and we shall witness further mergers and acquisitions that help consolidate the marker and drive further improvements in the coming years.
* Does inflation, natural disasters, etc. affect the insurance sector? How much do Reinsurance companies are attracting new capitals?
From my perspective, regionally, we haven’t really experienced too many challenges within the sector due to the ongoing Russian-Ukrainian war. The greater challenge is managing the impact of increasing inflation; apart from the high cost of living, there are continuing after effects of a post COVID environment. The general impact of inflation and the associated cost of living is likely to impact discretionary spending on insurance during 2023 and into 2024.
* What is the result of this volatility on prices and terms?
In terms of volatility, this is likely to impact investments within businesses that can provide a challenge to business who look to grow and expand their business activities. Insurance companies will need to look for new opportunities to be able to build a better future for their shareholders. Barriers should act as a catalyst for fostering creativity and then to devise solutions.
* The Arab insurance sector is still working on traditional insurances, such as the motor and health lines…What are the measures the sector should take move into new and broader horizons?
Many measures should be taken, and different strategies must be adopted to ensure success. Various insurance’s lines like medical and motor which are considered mandatory lines, still contribute a large part of insurance company revenue in UAE. Insurance companies need to look and new lines, including professional, or financial lines, while insurance companies do have some obligations to introduce new and niches products to market, particularly in the specialty lines. Awareness is needed to explore the opportunities these types of lines offer, especially after moving past the economic crisis, rather than staying at the same place.
* Cyber insurance is still very modest globally, what is the status of these insurances in the Arab world?
We are exposed to cyber-attacks on both a personal and business level, and companies are spending a lot of time and effort trying to protect themselves, their businesses and data. We should have greater focus on securing individual and personal data as well, therefore, insurers should provide people the opportunities to purchase these types of products.
* What are the company’s most prominent achievements for the year 2022, and what are its plans for 2023?
During 2022 we transitioned from from Al Hilal Takaful which was owned by Al Hilal Bank, to a rebranded independent company under the name of Yas Takaful referring to the well-regarded Bani YAS Tribe of the United Arab Emirates and is perfectly aligned with the concept of takaful insurance. 2022 for us has been a year of building stability and we have many plans and preparations for the 2023, aiming to maintain our loyal clients and to build new relationships based on trust and delivering the best products and services. During 2023 we shall start the journey of transforming the company in terms of manpower and technology. One of the outcomes of a post COVID experience has created a need to improve technology and we shall continue our journey of continuous technology improvements.
We shall continue with our people strategy of creating a “best place to work” culture through learning, development and empowerment.