Updated: Oct 23, 2021
The digital revolution in the banking and the insurance sector has been phenomenal in the last decade. However, since no business can operate in a silo, InsureTech has evolved to solve customer experience concerns for many related industries.
Now, with the official proclamation of COVID-19 as a pandemic sent shockwaves worldwide, the market was devastated as everyone panicked. Understandably, people rushed to avail their life and health insurance plans because of the pandemic. Panic is a part of human behaviour to safeguard the near and dear ones. This has led to multiple changes in the industry as a whole with technological advancements as a backbone. UAE’s most recent insurance regulations came as a ray of hope. The UAE's Central Bank establishes a more transparent and secure environment by issuing orders to finance companies and banks to make the process of selling insurance more customer-friendly. This is where TurtleFin has a significant role to play in the adaptation of the new regulatory framework of the financial institutions and the banks to reduce the overall turnaround time.
UAE’s New Regulation: Clarity and Transparency Improvement
The UAE's financial system has been upgraded based on the guidelines of the regulator to make the entire system consumer-friendly through digital transformation for the benefit of the ecosystem. In the last 3 months, there has been a guideline from the central government of UAE which encourages digitization. The UAE's Central Bank has made it mandatory for licensed financial institutions (LFI) to disclose all commissions, charges, and fees charged to customers before purchasing insurance. Thus, the end customers would know exactly how much they will have to pay for insurance before they buy it.
The guideline requires licensed firms to keep track of their customers' affordability, provide them with options before selling insurance, and give consumers a chance to compare fees between products. This will help encourage digitization and make it easier for people living in the UAE to buy insurance without being ripped off or paying too much money. The end-consumers can also opt in to compare pricing, fees, benefits, risks, termination costs between their chosen insurance and similar products. Thus, insurance firms will now have to provide options to choose from, and it will be up to the customers to decide which product to purchase.
Licensed financial companies must provide their customers with a copy of the assessment, including numerical illustrations of the charges, fees, and benefits, as well as a copy of the suitability and appropriateness assessment, at the time of purchase. Companies have been instructed to give this information in a simple way, free of fine print and legal language, for it to be understood by the customers. It makes the entire procedure transparent to all parties and eliminates the possibility of future disagreements. This document provides all of the customers’ insurance information in one place so that they can compare rates more easily, quickly access their records if necessary, and make sure any disputes are handled smoothly!
Licensed Financial Institutes must submit a list of products and services sold to UAE clients to the Central Bank by the 31st of January each year.
In the backdrop of such a landscape, TurtleFin, with its technology-first philosophy and commitment to transparency and ethical dealings, is well-positioned to partner with financial institutions in the region.
TurtleFin stands ready
It is natural to expect insurance companies and banks to review their frameworks in light of these new regulatory developments, but TurtleFin is not one of them. As insurance and technology experts, TurtleFin has always prided itself on its clarity and transparency.
TurtleFin has been digital-ready for a long time now; the technology solutions meet the requirements of UAE’s new regulations and create a benchmark for optimally leveraging the right digital tools. The offerings are holistically designed to meet the exact need to empower the LFIs with the accurate knowledge and the technology that can help them serve their clients in the best possible manner. Hence, a seamless transition for financial institutions in UAE as they adapt to these changes in regulation without any issues whatsoever!
Thus, to abide by the new regulations along with digital progress, we offer a state-of-the-art infrastructure for all licensed financial institutions to adopt/upgrade platforms and serve their customers. We would also ensure that the customers would be guided with the most suitable insurance requirements and have the finest possible experience. Instead of spending time and investment in research and creating the technology, use our plug-and-play API to adapt the same into the ecosystem. The platform provides a seamless and secure financial ecosystem wherein the customer needs to follow a thorough process of need analysis and risk assessment. It also recommends the most appropriate insurance based on their profile and needs. At each level of the contractual process, the end-consumers would get a detailed report on any risks, restrictions, and obligations, as well as a claim settlement percentage. As a result, they will have all the necessary information they need before making a sale and thorough reports at regular intervals to help them make better decisions.
This is where TurtleFin stands ahead of the curve. Just to give a brief background; TurtleFin was founded by insurance and technology specialists who understand and acknowledge the pain points. Thus the platform was created to bridge the gap between the seller and the end-user with the help of digitalization. With major success in India, TurtleFin is now technology-ready to lead the way by adapting UAE’s new regulations and helping LFIs adapt the same seamlessly!