LIFE INSURANCE  2022:  As the industry enters its next growth cycle, there is a need to align more with larger national and global priorities, observes Ashok Sordona  Trends for Life  Despite lingering uncertainties and pandemic cycles, the insurance industry's outlook heading into 2022 is more promising than it was last year. Successful vaccination and resumption of economic activities offer much in the way of optimism. The UAE, with its world-leading vaccination rate and well-planned orchestration of the World Expo, has demonstrated its potential to stay resilient and enable industries, including insurance, to grow. So, the year 2022 will see non-pandemic factors like digitalisation, regulations, and market dynamics take shape in the insurance industry. Combined with pandemic-induced changes in consumer behaviour and a heightened awareness of health and  wellbeing, these forces could manifest as follows.  STEADY TOP-LINE GROWTH At the onset of the pandemic, due to unnatural circumstances, insurers and regulators were in a fix as far as coverages and payouts were concerned. Meanwhile, customers gravitated towards greater financial protection — which made insurance a necessity rather than a "push product". In fact, in a YouGov study' 46 percent of UAE residents prioritised life insurance far more than before the pandemic. As a result, there was an uptake of policies, but claims and payouts were relatively low due to fewer accidents and non-COVID hospital admissions. Therefore, in 2022, as loss ratios reduce, insurers' total ISSUE 115 FEBRUARY 2022 comprehensive revenue is expected to grow steadily. This will be a sustainable growth due to largely inbound, not outbound, sales.  INCREASE IN REGULATORY CLARITY Insurance in the UAE is primarily regulated under the Federal Law No. 6 of 2007, which has witnessed a number of revisions and additions. Last year, the Insurance Authority — established under Law No. 6 — has merged with the UAE Central Bank, leading to a unified regulatory entity. This development could bring more congruence between financial institutions and the insurance profession. Also, the central entity has been particularly keen on market consolidations due to the high number of service providers per capita. Despite no official announcements to this effect, there could be moratoriums on license issuance. As a result, the industry could witness collaborations between insurers, for value-added services and new go-to-market strategies. Most importantly, the industry will find greater regulatory clarity this year as new directives are officially announced and implemented.  UNDER-PROTECTED SEGMENTS The demand for insurance is currently uniform across expats and the local population. Expats, in particular, are now more inclined towards long-term stays and perceive the UAE as home. As a result, they are not averse to long-term plans and premiums. Most importantly, however, the insurers are particularly focused on under-protected segments, including gig workers and the blue-collar sector, who are now more aware of the need for financial protection. Also, their financial health is more stable now due to group medical insurance becoming mandatory. Previously, blue-collar workers either had basic coverage or none at all. This segment's needs are being met by providers as they can see the demand and need of the blue-collar workers. Even group life insurance could soon become mandatory. So, these factors could play a role in people's decision to join — or not join — a new company. Microinsurance solutions with low premiums and considerable coverage could be on the rise this year, fuelled in part by growing digitalisation.  DIGITAL TRANSFORMATION After COVID-19 impacted distribution  capabilities, by limiting opportunities for face-to-face customer engagement, many insurers have pivoted to digital operations. Although videoconferencing tools are not new, the pandemic has expedited their adoption by five years at least. Clients and advisors are getting increasingly comfortable in discussing and closing deals online, without face-to-face interactions. Previously, advisors had to travel extensively, conduct multiple meetings, and then onboard clients. So, to this effect, videoconferencing tools are not just the means of communication; they are the means of transportation. This has expanded the serviceable markets. This shift has also increased insurers' exposure to other technologies that can enhance operational efficiencies. Fast-moving insurers have built multi-channel capabilities and are leveraging insights to personalize their services and improve customer experience. In 2022, such insurers could focus on greater transparency in how they collect and utilize personal data. This priority stems from customer expectations as well as regulatory requirements — as stipulated under the Electronic Insurance Regulations of Decision No. 18, which mandates insurers, who intend to digitize their services, to furnish a detailed plan and obtain approval before commercial launch. Such regulations bode well as digital transformation enters its accelerated phase in the insurance industry.  INSURERS WILL BROADEN THEIR HORIZONS If anything, the pandemic underscored the importance of insurance solutions, especially at the intersection of healthcare and the financial market. In 2022, as the industry enters its next growth cycle, there is a need to align more with larger national and global — priorities. This includes developing solutions aimed at socio-economic empowerment. Provisions can be made to enhance financial resilience in the event of a future economic downturn. Coverage gaps in existing policies can be bridged. Fortunately, the timely increase in digitalisation has enabled stakeholders to balance priorities, make accurate risk calculations, and adopt flexible models, which will be key going forward. It is safe to expect the insurance industry to grow at a CAGR of around seven to eight percent from 2022-25 — which will increase the competitiveness of the UAE as a place to work and live, in good health and finances. 0  LIFE INSURANCE   ASHOK SARDANA, FOUNDER AND MANAGING DIRECTOR OF THE CONTINENTAL GROUP    Most importantly, however, the insurers are particularly focused on under-protected segments, including gig workers and the blue-collar sector, who are now more aware of the need for financial protection. Also, their financial health is more stable now due to group medical insurance becoming mandatory."  Reference 1. iittps://www.fccib.net/news/n/ news/life-insurance-top-priority-for-uae-residents-after-covid-19.html  premium-me.com