Contributing 42% to total GWP collection in 2018, as per the data released by the Insurance Authority of UAE, traditional brokers led the distribution of insurance products among the UAE population. These brokers have been characterized as employing a team of telesales representatives opting for aggressive selling for different products including Health, Motor, and Life to meet their monthly sales targets. Generally, such brokers used to limit customer choices to 2-3 partner insurance providers. However, with the advent of price comparison websites (aggregators), brokers are also facing the heat of their share cannibalizing to aggregators. Let’s evaluate how brokers could beat this heat.
According to Draft Regulations of Electronic Insurance published by UAE Insurance Authority in January 2019, modified in December 2019; price comparison websites cannot directly collect the insurance premium from customers and can only facilitate in providing price comparison services. To avoid missing traffic/sales, major aggregators including Yallacompare, Souqalmal, Bankonus, and PolicyBazaar UAE have partnered with brokers. Through this, an aggregator platform assists the customer in providing a wide array of choices (not limited to 2-3) and generated lead is then transferred to the partner broker. Is this model successful? Analysts at Ken Research estimate the penetration of online insurance surging from 1% in 2018 to a whopping 11% by 2024, with price comparisons being in-charge. The success is also evident in tremendous monthly growth rates experienced by aggregator platforms, ~10% in a number of policies being sold every month.
In 2010, AFIA Brokerage Services, a pioneer in the UAE Insurance Brokerage industry, rebranded its platform to the Insurance market. ae and later introduced e-mail-based comparison services to its customers. While the entire process is not done online as by other aggregators, the Insurance market.ae has moved in this direction and plans to further strengthen its position in the industry. An early step in this direction could help in safeguarding the top-line figures of brokerage firms.
With demand increasing for online services, customers prefer to buy everything as per their convenience in minimal time. To adapt to changing customer buying behavior, it becomes pertinent for incumbents to evaluate their business strategies. The tremendous growth expected of aggregator’s platform through increased traffic, increasing leads, and sales could set the momentum for the same.
“Change is inevitable, and the disruption it causes often bring both inconvenience and opportunity” – Robert Scoble
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 the Report: –
Online Brokers vs Online Aggregators UAE
insurance market UAE
UAE Fintech Market
Number of Insurance Lives Covered UAE
Car Dealership Sales Insurance
Motor Insurance Declining Premium UAE
Life Insurance GWP Online UAE
Individual Life GWP Online UAE
Online Brokers in UAE
Number of Policies sold by Policy bazaar UAE
Dubai Online Motor Insurance Market
Online Health Insurance in Abu Dhabi
For More Information on the research report, refer to below link: –
UAE Online Insurance Market Growth
Related Report by Ken Research: –
India Online Insurance Outlook to 2019 – Driven by Internet Growth and Web Aggregators Industry
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249