Srinivasan A. Rajagopalan

Recovery does not happen all at once, but rather comes in gradual stages until we reach absolute recovery. This is how Mr. Srinivasan A. Rajagopalan, CEO of Dubai National Insurance company (DNI) summarized the reality of the insurance sector in the Emirates, pointing out that the second half of 2023 was for a correction phase for what the sector went through in the year 2022.

The company seeks to fly high by maintaining its future plan and achieving profitability while developing customer service and relying on artificial intelligence in a way that provides the company with better exposure and greater trust.

* What is your strategy plan for DNI?

Our prime focus will remain on the bottomline. Topline is incidental and hence our focus is on increasing net profitability. We aim to keep our position strong, stable & profitable. We aim to be customer centric as our customers are our capital. Our team is goal oriented, and I’ll drive it further to achieve our goals and to apply our strategy.

* How do you evaluate the state of the insurance sector in the UAE during the year 2023?

The insurance activities are similar to any other activity in the UAE. The supply of providers is good enough for the market. In addition to that, the country has a powerful economy which pushes tremendous number of businesses to grow and many investors to invest. Every player wants to benefit from the situation which results in unhealthy practice. Consequently, we notice a very high pressure on top lines. It is worthy to note that the number of insurance companies present in the market is really big where there are around 60 working insurance companies, in addition to the brokers, and this certainly affects the profit size.

Because of the vibrant economy and large economic developments in the country, many businesses come to light and the top lines are seeing vigorous growth. However, the bottom lines don’t keep pace with the top lines due to the elevated losses and the acquisition costs. As we all know, commissions are also high in this market.

The results of the insurance companies for the year 2022 were worse than 2021, the reason behind this, is that in 2022, the market opened fully up businesses after the lull of 2020 and 2021, and the inflation went higher and it was unprecedented.

The second half of 2023 has been marked by some corrections in the insurance sector especially on the level of premium rates. In addition, the government regulations that allows insurance companies to give substantial discounts was withdrawn. We hope that these corrections in regulations help in resolving problems facing the motor segment and reduce losses. The medical premiums are witnessing some corrections as well. I do believe that the second half of 2023 will be better than the first half and I expect this trend of improvement to continue to the year 2024.

* The artificial intelligence became an essential factor for optimizing customer service, improving efficiency and productivity…

What is the importance of AI in the insurance sector in the UAE in general and your company in particular?

Artificial intelligence is the trend of all markets. The UAE Minister for AI, has stressed the importance of using this technology tool in doing business. As a company, we’ve recently launched a state-of-the-art portal for motor insurance that can be used by our brokers and customers. It is based on the latest technology, which is one of our fundamental targets.

We use AI to discover ways to optimize processes and enhance operational efficiency. Within this framework, we are keen to keep pace with our technology providers to update our systems with the latest upgrades. We strive to help our customers, for that, we have updated our digital chat system to deliver accurate answers and better quicker service.

Using the AI we can build on the past and the present data to build a better business future.

* What are your opinion in merger and acquisition among insurance companies?

Mergers or acquisitions must include mutual benefits for both parties. There is a certain value to be attained from any business deal and companies which are seeking merger or acquisition.

* Where does DNI aspire to soar?

We want to soar high and have more expansion. We will certainly grow. and we would like to attract customers through our transparency and credibility. We aim to achieve profitability, however, it should be aligned with exceptional service and customer satisfaction and thereby aspire to become the preferred Insurer by choice.