Progress is not achieved by staying where we are, but only by striving to keep pace with developments of the times, especially the technological ones. For that, Dhofar Insurance company is in constant endeavors to implement latest technology in its systems. Whereas, Mr. Sunil Kohli, CEO of the company, praises the company’s goals aimed at focusing on customer service. On the other hand, Mr. Kohli, indicates a change in the realm of the insurance sector after the Corona pandemic and the proliferation of natural disasters, as awareness has increased about the importance of emerging risks and the need to address them.
* How do you evaluate the state of the insurance sector during the year 2023 globally, and in Sultanate Oman?
The year 2023 was marked by positivity on different levels compared to previous years that were affected by Corona virus where the number of sales of vehicles was reduced as well as the demand for insurance policies. This had a direct impact on the insurance sector. This sector is deeply related to the economic growth as well as to the number of working people. Consequently, the industry benefits from every new business project and investment taking place. But unfortunately, all these investments and the business growth were in suspension during the pandemic crisis when people were fighting to survive. During the period post-Corona virus, the Sultanat in general and the insurance industry in particular are moving ahead with various economic projects. In Sultanate Oman, new projects have been announced in addition to various pursuits in the pipeline, along with discussions with various countries to welcome productive investments. All these updates widen the growth prospect for all economic sector including the insurance one. Although many countries of the world are suffering from natural catastrophes such as Morocco and Turkey, but we still have optimistic view towards the future. The insurance industry which is supposed to face these adversities, will inevitably rise to the occasion, however we have to be conscious about likely increase in reinsurance costs.
* Do you think that non-traditional insurance lines (global warming, natural disasters, cyber insurance…) have become part of general insurance in the Arab region? What is the ability of local insurance companies to provide it?
In an early stage of the global natural catastrophes, we witnessed a lack of awareness for the significance of these risks in the Arab world. Consequently, the pricing policy for this insurance line was limited and ignored. However, throughout the last 5 years we’ve noticed an increase in natural catastrophes frequency, where many cyclones affected our geographical area and affected directly the risk pricing in the Arab region. After being considered as significant risks to mitigate, the cost of the Nat Cat policies has increased.
On the other hand, the cyber risk becomes truly significant, yet is not having a major impact on our region comparing to Asia, Europe and US. The number of attacks and malware are multiplied, driving the insurance sector to take measures, face and find solutions for these serious risks. There is a huge space to cover in this field, yet Dhofar insurance is now working very closely with leading reinsurance companies for creating new cyber insurance products specific to individual retail customers.
* Artificial intelligence has become one of the main features at work in the insurance industry due to its prominent role in improving customer service and increasing efficiency and productivity…
– What is the importance of the AI in Sultanate Oman in general and in Dhofar insurance company in particular?
Any new technology has the potential to be useful for the industry. The importance of the AI varies depending on the sector, and its usage in the insurance industry is very wide. We, as company are working on using the AI in risk assessment, although we usually rely on individuals for this kind of assessments. Nevertheless, we cannot ignore the inputs this technology can bring to our systems, it will start with basic database to be more advanced in a later stage so it gives additional accurate indicators in a way to be number one useful technology in the risk assessment. It helps also in the pricing for some types of risks, in addition to claims management based on the nature of every accident, as well as to the evaluation of the feasibility of the assessment and fraud detection. The AI has numerous advantages even on financial level which stimulates us as companies to adapt it.
* What about your Dhofar’s achievements for the year 2023? What are your aspirations for the year 2024?
Dhofar Insurance has been working during the past 4 years on a transformational plan comprising digital transformation and adoption of technology. We are working on implementing digital systems, consequently, many retail products can be bought online through our digital platforms.
Furthermore, customer centricity will remain our main focus, and we are improving our process to provide the customer with the best experience. Customers can upload their basic information on our application to run their operations in a short time. On the other hand, we’re working on improving the claims management through our platforms, these upgrades are still in progress.
We are eager to grow digitally as we believe in the power of technology.
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