MUSCAT, FEB 20
The Arab insurance industry is poised for responsible integration of artificial intelligence (AI), with key players discussing the need for robust regulatory frameworks at the 34th General Arab Insurance Federation (GAIF) Conference under way at the Oman Convention and Exhibition Centre, Muscat. Over 2,200 participants from across the region gathered to explore growth opportunities, the role of technology, and achieving a sustainable and inclusive future for Arab insurance.
A panel titled "Topic 4: Regulatory Frameworks for AI Adoption" highlighted the critical role of regulations in facilitating responsible AI implementation. Experts emphasized the need for clear and adaptable frameworks that encourage innovation while mitigating potential risks, including:
The discussion underscored the importance of collaboration between regulators, insurers, and technology providers. By prioritizing responsible development and fostering an inclusive regulatory environment, the Arab insurance sector can leverage AI's potential to drive innovation, efficiency, and sustainable growth while safeguarding consumer interests.
Also at the conference, the Oman Chamber of Commerce and Industry highlighted the promising outlook for Oman's insurance market. The sector currently accounts for a 1.23% GDP contribution in Oman, with insurance premiums reporting 13% growth in 2022. The capital of insurance firms also increased by 8.46% that year.
While Oman's market thrives, the broader Arab insurance sector faces challenges. The market grew a modest 1.8% to reach a value of $40.9 billion in 2021, representing 0.75% of global market share. Insurance penetration in the region continues to be low.
Experts identified a number of opportunities for growth. They called for implementing joint national policies between governments and the private sector, while also achieving a balance between protection, international best practices, and investment attraction. Players must also leverage opportunities for collaboration to develop the Arab insurance sector. On the flipside, rising insurance costs due to regional instability continue to be a source of concern. Besides, unusual weather conditions can result in higher reinsurance costs and stricter conditions for some companies.
Oman Observer is now on the WhatsApp channel. Click here
