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Ahmad Idris is the Chief Executive Officer of Abu Dhabi National Insurance Company (ADNIC) since 12/2014-Present. He has extensive management and leadership experience, having worked in the insurance industry for over 40 years. His last role at ADNIC before assuming the role of CEO was Deputy CEO.
Previous Position: CEO: Insurance House, Abu Dhabi National Insurance Co.
Idris has extensive management and leadership experience, having worked in the insurance industry for over 40 years. Known for his professionalism and commitment to quality, his proven leadership abilities have made him a veteran in developing and motivating others to achieve their goals. In his role, he is responsible for leading, developing and executing the company’s strategy.
Ahmad Idris has propelled ADNIC to ever greater heights over the past 5 years as CEO and continues to be the driving force behind the company’s various achievements. Under his leadership ADNIC has won several prestigious industry awards and has registered steady financial growth.
While Idris assumed the role of CEO in 2014, he has previously had an illustrious career at ADNIC, which spanned over two decades. His last role at ADNIC before assuming the role of CEO was Deputy CEO.
Starting his career at Kuwait Insurance Company in 1977, Idris brings a wealth of knowledge and industry experience to ADNIC. He is one of the most influential thought leaders in the industry and has also won several regional and international awards for his leadership.
Idris holds a Bachelor’s of Science degree in Mathematics from Kuwait University.
Ahmad Idris is famed for his capability in effectively managing key risks while maintaining a strong balance sheet, enabling ADNIC to provide the expected support to its customers and all stakeholders.
Abu Dhabi National Insurance Company (ADNIC) was established in the United Arab Emirates (UAE) in 1972, ADNIC is a leading multi-line regional insurance provider with long-standing expertise in providing insurance and reinsurance services to individuals and corporates across the Middle East and North Africa (MENA) region. ADNIC is licensed by the Insurance Authority under No. (1) and listed on the Abu Dhabi Securities Exchange (ADX).
ADNIC offers both commercial and consumers insurance products that are customizable and scalable. This flexibility enables the company to meet the unique and evolving needs of individuals, as well as small, mid-sized and large companies in the UAE and wider MENA region.
Abu Dhabi National Insurance Co offers insurance coverage. The Company offers homeowner’s, automobile, boat, life, accident, cargo, fire, aviation, marine, and engineering insurance for individuals and businesses.
ADNIC’s equity as at 31 December 2020 has reached 2.51 billion, with solid levels of liquidity and capitalization. ADNIC’s financial maturity, robust balance sheet and operational excellence enable the company to meet its obligations to clients and provide peace of mind when they need it most.
Saying the above, ADNIC’s CEO Ahmad Idris talks with BUSINESS LIFE on everything from ADNIC’s rise to his views on the insurance industry, from UAE to the region.
BL: Amid challenging market conditions, Abu Dhabi National Insurance Company (ADNIC) has posted a net profit of AED133.6m ($36.4m) for the first quarter of this year, a 9% increase compared to the corresponding quarter last year, to what factors is this increase contributed? What are your expectations in relation to 2021 consolidated net profits in the current fiscal year (FY20201)?
Ahmad Idris: Our dynamic response to the pandemic, coupled with investments we have made in technology over recent years, have enabled us to remain competitive and achieve exceptional financial results during an unprecedented year. Our effortless work-from-home transition has proven to be very successful as we provided uninterrupted services and delivered on our promise of being our customers’ reliable insurer. ADNIC’s performance was also driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio. With economies reopening and vaccines being widely distributed across the region, we expect to see a solid year ahead in terms of financial performance.
BL: S&P upgrades credit rating of Abu Dhabi National Insurance Company to ‘A’, what are your comments?
Ahmad Idris: We are very pleased with the upgrade which recognises our track record over many years. As one of the region’s oldest insurers, our strong financial position and market share is maintained through a clear strategy, having built a strong track record of positive underwriting performance.
BL: What is the fundamental strength of ADNIC?
Ahmad Idris: Our core business as an insurer is in the protection of people. The company demonstrates its commitment to the community through its partnerships and numerous CSR initiatives, covering health, education, sustainability and environment. Our core values are truly embedded in our culture and we pride ourselves on continuously upholding these values when we interact with our shareholders, partners, clients and employees.
I believe our key differentiation in service lies in the way we manage claims – ADNIC’s claims servicing team consists of experienced, customer-focused professionals who ensure peace of mind and a positive experience for clients.
We are highly focused on digitisation and are committed to innovation. We look forward to, alongside other insurance players in the UAE, pushing the sector into a new era in line with the country’s vision.
BL: What are your insights on the changes taking place in UAE’s insurance market and also the region’s insurance market?
Ahmad Idris: The continuous introduction of regulations and adoption of governance in most of the markets in the region including UAE was one of the most effective drivers for efficiency and resilience.
The UAE insurance market has enjoyed consistent growth in recent years, earning a reputation as a key regional hub and emerging international centre of excellence. This is due to numerous reasons, including the ease of doing business in the market and the financial hubs such as Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), an enabling regulatory environment and strong market dynamics, as well as the presence of strong, established insurance and reinsurance players with rich technical expertise. When we look back at 2020, the insurers with the most expertise, highest capacities and proven reliability were the ones that weathered the turbulence most successfully.
BL: Do you think that there is a need to raise awareness on the threats arising from natural hazards and the importance of creating the necessary models to ensure preparedness in the face of the risk?
Ahmad Idris: Yes, totally agree. Both the frequency and severity of the natural hazards have significantly increased over the past two decades.
BL: What are current and the future structural challenges facing the insurance and reinsurance sectors in relation COVID-19?
Ahmad Idris: Generally, the industry has adapted effectively to the new challenges without compromising the quality of service. Insurers that have established business continuity plans, corporate governance and efficient technology platforms have been able to perform better than others in the sector.
The insurance industry is sometimes viewed as less digitally savvy than their counterparts in the wider financial sector. Nevertheless, the pandemic demonstrated a high level of responsiveness from insurance companies to ensure business continuity and focus on digital delivery.
BL: Is it of great importance to make cyber insurance mandatory for small and medium-sized enterprises (SMEs)?
Ahmad Idris: It would be a good move to make cyber insurance mandatory. Cybercrime is one of the biggest risks facing individuals and jeopardising businesses in our present day, and SMEs are more vulnerable to major threats than their bigger counterparts. Cyber insurance is important to mitigate risks for companies of all sizes and insurers need to be part of this change to help bring more innovative solutions and tools to help customers better understand the risks of cybercrimes. These threats are not as pervasive in the GCC, but nonetheless insurers should have a holistic offering that covers a majority of emerging risks from cybercrimes.
BL: A complete digital transformation of the insurance sector is unlikely at present, even though the COVID19 pandemic has accelerated, do you agree and why?
Ahmad Idris: Our digital strategy has accelerated during the pandemic, pushing ahead with a wider range of more specialised digital services. Before the pandemic, we already had a highly competitive set of digital offerings, however, many customers and clients in the region still strongly prefer to deal in person, and digital channels were not being used to their full potential.
Today, we are very well advanced, with 2020 having been a significant year for digital transformation. Customers have embraced the digital-first mindset and we think that change will continue post-pandemic. The pandemic forced us to consider where non-digital services fit into the bigger picture. In-person services will still be needed, but we need to think very scientifically about where and how we offer those offline services.
Our forward strategy recognises the ever-evolving landscape of technology.
Another important area is Insuretech which is at an early stage in the UAE, but we are seeing positive changes from the regulators, and ADNIC is working with startups to use technology for the benefit of customers. We continue to keep a close watch for developments in the industry and will leverage the full power of technology to deliver services more efficiently.
BL: His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Prime Minister and ruler of Dubai, has unveiled the Dubai 2040 Urban Master Plan which focuses on the sustainable urban development of the emirate and aims to increase the resident population to 5.8m then from 3.3m today, how this plan might reflect on UAE’s insurance business?
Ahmad Idris: Dubai is a dynamic, fast-growing city that is attracting people and international businesses across all walks of life, which generates numerous opportunities for retail and life insurance products, enabling a virtuous circle of positive outcomes that will support the growth of the sector over the long term.
In fact, ADNIC has expanded its footprint in Dubai and Northern Emirates and we expect to see that continue over the coming years.
BL: The Emirates Insurance Association has confirmed that it will present a proposal for an electronic link between insurance companies and vehicle licensing authorities, so as to enhance traffic safety, what is your opinion?
Ahmad Idris: We have supported this initiative which is a step in the right direction.
BL: Why do companies so often end up with a shortfall in their talent pipeline?
Ahmad Idris: People are vital to the successful operation of an insurance company and the growth of the MENA sector over the decades is a result of exceptional talent being attracted from overseas. Given the presence of numerous local and international insurance players in the region nowadays, there is a strong and deep talent pool in the UAE and the increased competition between insurers can sometimes make acquiring talent more challenging.
BL: What are your plans for the rest of 2021?
Ahmad Idris: Customers are always our top priority, therefore ADNIC will continue to work on digital transformation programmes across all customer channels, products and consumer insurance lines. The company will also continue to work on initiatives and activities that support our communities and address environmental challenges in a way that contributes to enhancing health and safety.
BL: What are your expectations of the year 2022?
Ahmad Idris: We expect 2022 to be a continuation to 2021 in terms of economic overall recovery.
BL: What are your career challenges?
Ahmad Idris: There will always be challenges in your professional life, no matter your level, and I take them on positively. As we draw closer to ADNIC’s 50th anniversary next year, and given the company’s legacy in the UAE, there is big responsibility to build on this legacy,
BL: Are you optimistic about the region’s future?
Ahmad Idris: Over a year into the COVID-19 pandemic, the race between vaccine and virus entered a new phase in the region, and the path to recovery in 2021 is expected to be long and divergent. The outlook will vary significantly across countries, depending on the pandemic’s path, vaccine rollouts, underlying fragilities, exposure to tourism and contact-intensive sectors, and policy space and actions.
In terms of the insurance industry, it will remain resilient, continuing to generate growth around the world and maintaining overall profitability despite turbulence in the global economy. Insurance will continue to play a vital role in supporting the economy and helping companies and individuals mitigate risk.
