With the insurance industry poised to boom in UAE, we assess the state of UAE carriers' online distrbution portals ands find much room for improved service in prospecting tools, policy holder self service, customer portfolio information, claims, and customer support.

1. • Cognizant 20-20 Insights
Online Capabilities of UAE Insurance Carriers:
The Road to Customer Satisfaction
Given increased competitive pressures and significant operational
challenges, highly functional and intuitive enterprise portals have
emerged as a clear differentiator for insurers bent on seizing the
high ground in this fast-growing but quickly maturing market.
Executive Summary However, their online distribution strategies are
currently suffering from IT challenges such as:
Over the past few years, the UAE insurance market
has undergone significant changes marked by
consolidation, demutualization and a strong
• Absence of a coherent channel strategy.
trend toward specialization. It is expected to grow • Absence of key features of utmost importance
significantly, given the relatively low insurance to the end user.
penetration levels, growing population, rising • Absence of business-IT harmony.
GDP and infrastructure development. The sector
is expected to grow at a CAGR of 19%, reaching
• Silo implementations.
US$18.3 billion1 by 2015. Insurance premiums are • Portal proliferation arising from mergers and
also likely to grow at a CAGR of 20% over the acquisitions.
next four years to reach US$37 billion, with the
The importance of online distribution and the
general insurance segment contributing 86% of
issues faced currently have pressured insurers
the total premium.
to create an enterprise portal strategy. We have
This fast-changing environment demands best studied the online portals of a select list of UAE
and innovative practices in all aspects of insur- insurers to understand their effectiveness and
ance company operations such as product future readiness.
development, information systems, distribution
This white paper explores our findings and delves
strategies and client services. With a booming
into growing online capabilities of 10 insurers
population, increased competition and a larger
operating in the UAE region. It provides insights
market to tap, distribution strategy planning has
on the overall regional IT landscape within the
taken precedence over other focus areas. Given
insurance industry, analyzes and identifies the key
the large young population and an Internet usage
differentiating capabilities, and presents a picture
that points directionally upwards, distribution
of the online maturity level of these players.
strategists have started to emphasize online dis-
tribution to capitalise on growing opportunities.
cognizant 20-20 insights | april 2012

2. The Big Picture: UAE Insurance growth drivers and hence demands a specific
Carriers’ Online Capabilities focus. With the increase in growth opportunities
in-country, global insurers should concentrate
Budget constraints and a conservative approach
more on enhancing their customer portals in
to information technology have meant that the
the UAE to provide specific information on their
UAE insurance industry has until now adopted a
regional products (e.g., their focus on Islamic
passive approach to IT investment. Similar results
insurance products).
were also found in our assessment, where we
analyzed the online capabilities of a sample of 10 Our research shows that some of the regional
UAE insurers and scored them based on certain insurers in UAE have used their portals merely
parameters. (The assessment methodology is to present information and have not used them
detailed in the final section.) as strategic tools to increase sales. With an
The companies The companies that scored high increasing awareness of insurance needs among
relative to their peers in their the population, personal insurance is expected
that scored high online capabilities were still found to be on the rise in the UAE and the insurance
relative to their to lag behind what we posit as an carriers should look to their online medium to tap
peers in their online ideal state, based on our research this market.
and engagement experience.
capabilities were still And, amid ongoing structural Research Revelations: The Road to
found to lag behind and regulatory reforms, the need Customer Satisfaction
what we posit as an to tap the growing market as well We have analyzed the online capabilities of the
as the pressure to remain com- UAE insurers under the following sublevels.
ideal state, based petitive are all the more reason
on our research compelling insurers to improve Prospecting Tools
their existing customer portals.
and engagement With the advent of Internet-savvy customers,
UAE insurers need to move to the next online
experience. While a majority of the global
level, from only providing basic product informa-
insurers that were reviewed
tion to delivering quote generation and quote
had strong regional customer portals, a few had
retrieval capabilities. Of the insurers analyzed,
portals that were effective only for their U.S. or
80% provided either quote generation or quote
global businesses, and their UAE country-specific
retrieval; only a few offered both.
portals were functionally lean. Being significant-
ly different from the U.S. or UK in its economic Insurers have improved customer satisfaction by
development and insurance market penetration, providing well-organized enquiry facilities either
the region (as previously discussed) has different through online forms or by providing contact
Assessing UAE Insurer Online Capabilities
Ideal
Regional Insur er 5
Regional Insur er 4
Regional Insur er 3
Regional Insur er 2
Regional Insur er 1
Global Insur er 5 Company Infor mation
Global Insur er 4 Pr ospecting Tools
Global Insur er 3 Policy Holder Self Ser vice
Customer Por tfolio Infor mation
Global Insur er 2
Claims
Global Insur er 1
Customer Suppor t
0 1 2 3 4 5 6 7 8 9 10
Source: Cognizant Business Consulting
Figure 1
cognizant 20-20 insights 2

3. information. The process was simplified for this capability, possibly by giving the customers
customers at four of the 10 insurers reviewed by a firsthand look at what their premiums would
providing a call-back option either through SMS be by simulating scenarios of losses or indemni-
or e-mail. ties over a period of time. Regular updates on the
company product offerings could also be given
Policyholders’ Self Service through mobile apps.
Our research indicates that regional carriers
provide only a moderate amount of self-service Claims
capabilities to customers. Unlike local carriers, Online capabilities on the claims front, such
global insurers have been able to capitalise as online claims notifications and claim status
on their portal experience in providing richer tracking, were not provided by most of the
features in their regional portals. insurers analyzed. Global insurers fared better
than the regional ones in our assessment in terms
The majority of the insurers we surveyed have of their claims-related online
implemented online options for policy trans- capabilities given their ability Unlike local carriers,
actions, such as the conversion of quotes into to leverage their expertise from
policies and policy endorsements, but not many other regions.
global insurers
of them have implemented renewal and cancel- have been able to
lation transactions. About 10% of the insurers Claim notification could be made
capitalise on their
analyzed differentiated themselves from the rest online through e-mail, a call-back
by providing additional and unique facilities like feature, forms or by providing portal experience
provision for making nonfinancial endorsements. regional contact numbers in in providing richer
the portal. Roughly 20% of the
Roughly 50% of the insurers we reviewed features in their
insurers we studied provided
enabled their customers to make online trans- all modes, while another 20% regional portals.
actions through secure gateways and electronic supported only one channel.
fund transfer. However, these insurers have A few of the insurers differentiated themselves
not provided the option to generate receipts. from the pack by providing specific facilities.
Customers are moving towards a paperless For example, one insurer had a live chat facility,
working mode and value the option to generate and a few of them (10%) had information about
online bills and receipts. third-party services like facilities, garages and
hospitals. In the future, these online capabilities
We were surprised to observe that 50% of
will help the carriers to stand out from the rest.
insurers studied did not provide independent
logins for their customers to view, track and print Claim tracking was provided by only 30% of the
their policy information. insurers that we studied, and then only at the
final stage. Only three insurers posted contact
Customer Support
information of the claims service providers on the
Though most of the insurers assessed posted portals. Ideally, insurers would enable customers
their customer care phone numbers on their to assess the status of any claim at each level,
portal, only a few went further by providing interact with the staff currently managing the
specific complaint handling options such as an claim and check the schedule of forthcoming
online complaint form and exclusive complaint activities.
handling contact numbers. Millennial customers
look for more online options than the mere Customer Portfolio Information
provision of real-world contact numbers. For Most insurers scored below par in this category
example, research suggests this demographic in our study. The majority merely provide static
is better satisfied if they can get quotes, locate product information. Separate logins for each
agents and buy policies online. customer, providing them with the option to view
and track their portfolios, were provided by 40%
To keep customers informed about the company
of the insurers, particularly those that notched
and the market, most insurers reviewed had
higher scores than the rest in this capability.
either published an insurance glossary or an FAQ
Providing self-service options along with separate
section. This enables customers to make more
logins will enhance customer experience; this is
informed decisions with regard to the company’s
an area that insurers should target.
offerings. However, to help motivate customers
to transact, these insurers need to improve on
cognizant 20-20 insights 3

4. Insurers’ portals will continue to coexist with their cy regarding company particulars would enhance
agent distribution channels. This channel can also value perception in the minds of customers. Some
be enhanced using the online medium, wherein insurers have elevated mind-share and cred-
agent management and training can be handled ibility by detailing additional information such as
through portals. Independent login for agents countries served, country-specific offerings and
would give them better access to data, better self- their anti-fraud and anti-laundering policies.
service options and the opportunity to view key
reports without being constrained by business From New Business to Claims:
hours and dependency on people for data. Not Where Are the Insurers?
many UAE insurers have embraced this as a key Figure 2 illustrates the online capability framework
tenet of their strategic push to improve sales, we developed along different functional areas
however; this should be a clear future focus area across the insurance value chain. The table
indicates how many insurers provide capabili-
Company Information
ties within each category and with what level of
Company information is not a major differentiator maturity. This can be used by carriers to identify
according to our study, but increased transparen- the areas to concentrate on in the future.
Capability Framework: Insurers’ Presence
Online Capabilities Capability Benchmark
Capability Measuring Criteria Description of Capability Low Moderate Good
Company Information
Countries Serviced Does the company have online capabilities for all Does the company have online capabilities for NA NA NA
the countries that it serves all the countries that it serves
Contact Options
Other Information
Website feedback
Company profile
(About us, history, etc.)
Branch information
Compliance and ethics guide
News/press corner
OT
Website feedback
Company profile
(About us, history, etc.)
Branch information
Compliance and ethics guide
News/press corner
3
3
3
3
3
SH
Prospecting Tools
Online product informa- Product information — information on all non- Product features/benefits
tion and quote online products (i.e. except Motor, Health, Travel,
Home, Critical Illness Insurance, etc.)
Online quote Option for online quote generation 3
Premium/annuity calculators Premium/annuity calculators 3
Contact options for Online enquiry for both online and other products Online enquiry 3
information
AP
Contact us details for queries and service requests Contact us details 3
Call back request functionality Call back 3
Policy Holder Self-Service (New Business and Subsequent Transactions)
Policy Transactions Online policy issuance Customer should be able to convert a quote 3
to a policy online
Endorsements processing (non-financial) Customer is able to change address, premium 3
frequency, nominee addition, etc.
Online renewal Customer should be able to renew his/her 3
SN
policy online
Financial Transactions Online premium payment or EFT Provision to pay premium online or an option 3
for EFT
Premium receipts generation Provision to generate receipts for the 3
premium paid
Personal Profile Man- Change/edit personal information Personal information including password 3
agement
Figure 2
cognizant 20-20 insights 4

5. Methodology Score
A sample of 10 insurers operating in the UAE A score was provided on each of the capabilities
region was selected and analyzed on their online based on benchmarks. An overall normalized
capabilities. The analysis was performed via a score was also obtained for each of the insurers
three-step methodology. and cross-compared to determine the relative
performance on these capabilities. Each of the
Research insurer’s scores was also pitted against an ideal
The research on the online portals of the carriers insurance company capability score. This ideal
was conducted by analyzing their portals. score was built hypothetically, based on our
The research was carried out on a few broad experience with similar portals.
categories, namely company information, pros-
Analyze
pecting tools, policy holder self-service, customer
portfolio information, claims and customer From the assessment data, key differentiators
support. Each of these broad categories was were identified, which helped some insurers to
broken into subcategories or features on which score better than others. Also, a generic view was
the online portals were evaluated. obtained from the data on the number of insurers
that have implemented capabilities at each level
of our framework.
Footnote
1
Based on data from The World Bank, Internet usage has increased by 67.4% in the past 5 years.
About the Authors
Ramanujam Venkatesan is a Consulting Manager with Cognizant Business Consulting’s Insurance
Group. He specializes in consulting for general insurance clients and has been engaged with multiple
carriers across North America, Europe and Asia Pacific. Ramanujam holds a post-graduate degree in
management from the Indian Institute of Management (IIM) Indore and has a bachelor’s degree in engi-
neering from the University of Madras. He also holds certifications from the American Institute for
Chartered Property and Casualty Underwriters (AICPU). He can be reached at Ramanujam.Venkatesan@
cognizant.com.
Vinodh Stanley Stephen is a Business Analyst with Cognizant Business Consulting with a specific
focus on the insurance industry. Vinodh has extensively researched strategies for insurance carriers
in developing markets. Vinodh has a master’s degree in management from the Institute for Financial
Management and Research (IFMR) and a bachelor’s degree in engineering from Anna University. He also
holds certifications from AICPU and CII. He can be reached at Vinodhstanley.Stephen@cognizant.com.
cognizant 20-20 insights 5

6. About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-
sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in
Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry
and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50
delivery centers worldwide and approximately 137,700 employees as of December 31, 2011, Cognizant is a member of
the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing
and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
World Headquarters European Headquarters India Operations Headquarters
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Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com
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