Page 37 - Insurance Times March 2024

and responsibilities for insurance company boards and senior prevention measures and adapting to changing environmental
management, emphasizing the importance of internal realities, the insurance industry can play a pivotal role in
structures and processes. Similarly, the Risk Management promoting climate resilience and ensuring the availability of
and Internal Controls Regulation establishes requirements insurance coverage against climate-related hazards.
for risk oversight, compliance, and internal audit functions
within insurance companies. Key roles such as Chief Risk Q. Are there specific innovations or trends that you
Officer, Head of Compliance, and Head of Internal Audit are believe will redefine the Gulf insurance landscape?
given prominence and subject to CBUAE approval. A: The insurance industry in the GCC region is experiencing
Overall, these regulations aim to enhance governance and a paradigm shift driven by five key trends. Firstly, the GCC
risk management culture within the insurance sector, holding has emerged as an early adopter of global digital
boards and senior management accountable for maintaining transformation initiatives.
robust risk management practices and ensuring financial Secondly, there has been a noticeable surge in mergers and
stability and integrity within the industry. acquisitions (M&A) within the GCC insurance sector.
Thirdly, governments across the GCC are prioritizing personal
Q. Given the increasing concerns around climate change, data protection in response to escalating cyber threats.
how can the insurance industry enhance its resilience
Furthermore, there is a notable rise in the demand for credit
and contribute to climate adaptation efforts?
A: The insurance industry is uniquely positioned to address insurance in the region, driven by the complexities of global
the challenges posed by climate change and contribute to trade and economic uncertainties.
building a more resilient society and economy. One-way Overall, the insurance industry in the GCC is undergoing
insurers can make a meaningful impact is by developing significant transformation, fuelled by favourable
innovative insurance products that incentivize climate- demographics, robust economic factors, and the
related risk prevention. For example, insurers can offer lower implementation of mandatory health insurance schemes.
premiums to policyholders who implement climate
adaptation measures, such as installing anti-flood doors or Q. As we conclude, is there any message or advice you
early warning systems. would like to share with the readers of The Insurance
Times. Thank you for taking the time to share your
By encouraging policyholders to take proactive steps to
mitigate climate-related risks, insurers not only reduce the insights and experiences with our readers.
policyholder's physical risk exposures and insured losses but A: As we come to a close, I would like to extend a message
of resilience and adaptability to the readers of The Insurance
also help bridge the climate-related insurance protection
gap. This protection gap refers to the disparity between the Times. In the dynamic landscape of the insurance industry,
actual losses incurred due to climate-related events and the it's crucial for professionals to remain agile and proactive in
navigating the ever-evolving challenges and opportunities.
portion of these losses covered by insurance.
Embracing innovation and technological advancements is
Given the increasing frequency and severity of weather-
related disasters, such as floods and cyclones, insurers must paramount in staying ahead of the curve.
adapt to evolving environmental realities. While the lack of Furthermore, fostering a culture of collaboration and
historical data in some regions presents challenges, insurers knowledge-sharing is essential for fostering growth and
are leveraging analytical tools to forecast how climate innovation in the insurance sector.
change will impact different regions and anticipate potential Lastly, I urge readers to prioritize sustainability and
outcomes. resilience in their business practices. As climate change and
As weather-related losses continue to test insurers' risk other global challenges continue to reshape the risk
management capabilities, it becomes imperative for the landscape, integrating sustainable and environmentally
insurance industry to develop expertise in understanding key conscious strategies into insurance operations is not only a
exposures and adapting to changing market dynamics. moral imperative but also a strategic necessity for long-term
Moreover, disruptions caused by meteorological and success.
climate-related extremes necessitate ongoing adjustments In closing, I extend my gratitude to The Insurance Times for
in insurance terms, exclusions, and regulatory frameworks providing a platform for industry dialogue and knowledge
to effectively address emerging risks. exchange. Together, let us continue to adapt, innovate, and
In conclusion, by proactively incentivizing climate-related risk drive positive change in the dynamic world of insurance.

34 March 2024 The Insurance Times