Read Full Magazine Here. The private sector is struggling to contend with the growing complexity of cyber risks to corporations’ finances, reputation, and even property.
These risks cut across multiple areas of business operations and permeate relationships with suppliers, customers, and third parties.
Furthermore, those governments that seek to address private sector cyber vulnerabilities face serious pushback against onerous regulations and reservations about creating a moral hazard if they assume responsibility for protecting the private sector. These reasons and others have made a governmental solution to this worsening private sector predicament unsatisfactory—a situation that is unlikely to fundamentally change for the foreseeable future.
Noting the above, it is time to mention that AWNIC is a very solid company with an enormous potential to grow and actively change the face of the insurance industry in the UAE.
Headquartered in Abu Dhabi, UAE, Al Wathba National Insurance Company boasts a rich legacy of over 25 years in serving the UAE insurance market, supported by a robust alliance with rated international reinsurers, an important part of securing financial stability and resilience.
AWNIC has been recognized by the UAE Central Bank for Excellence in Digital Transformation and Smart Services in both 2018 and 2019. Trailblazing in the region, it was the first company to publish an Environmental, Social, and Governance (ESG) report, underlining its dedication to sustainable business practices.
The company was named one of the most valuable companies in the Middle East in 2020 by Forbes Middle East and received the Silver Award by the prestigious Sheikh Khalifa Excellence Awards for its unrelenting commitment to quality, operational excellence, digital transformation, and superior customer service.
With a financial strength rating of BBB- with a positive outlook by S&P global ratings in 2023, Al Wathba National Insurance Company reaffirmed its position as a reliable and trustworthy insurance provider on a global scale. Its numerous ISO certifications reflect its commitment to the highest standards in information security, environmental responsibility, and quality management, as it continues to set industry benchmarks, offering innovative solutions and exceeding expectations.
After the retirement of Bassam Chilmeran, Al Wathba National Insurance Company appoints Frederik Bisbjerg as the new Chief Executive Officer (CEO).
With his great experience, Frederik aspires for boosting growth in AWNIC by digitalization, high-performance and creating new business value to increase profits.
Frederik Bisbjerg has an extensive background in the insurance industry. He holds a degree in International Marketing from the University of Aarhus (Denmark) and an MBA in Strategy and Organizational Development from the Business Institute Denmark. He has served in various management positions with insurance companies in the Middle East, notably Qatar Insurance Company, Noor Takaful and Daman.
A renowned figure in the insurance sector, Frederik Bisbjerg has a proven record of substantial expertise and leadership in digital transformation—a key element that aligns with AWNIC’s strategic growth plan, which received unanimous support from the Board of Directors.
Definitely, Frederik Bisbjerg will give a new niche to Al Wathba National Insurance Company at a timely phase especially he has big ties and connections with the insurance and reinsurance market worldwide.
Frederik Bisbjerg shares with BUSINESS LIFE reporter poignant and profound messages and reflects on the experience he’s had during his career.
BL: May I have a brief background about your career?
Frederik Bisbjerg: Looking back on my career, I’ve been opportunistic, always chasing what I wanted to do. About fifteen years ago, I ended up in a role in operations at SOS International, managing travel claims worldwide. That was my introduction to the insurance industry. From there, I expanded the company into China and Thailand. As we looked to grow into the Middle East, I connected with some of the latest insurance companies in the region and ended up taking a job I couldn’t refuse. So, I moved with my family, which was twelve years ago. I’ve always focused on business development through people, and now, technology. But my claim to fame, if you will, has been developing and growing businesses profitably—I’ve been really good at that for the last fifteen years, using the latest technology extensively. In 2018, I came across a company called the Digital Insurer in Singapore and was part of founding the world’s first digital mini-MBA in digital insurance, which launched in 2020. It’s very successful and keeps my skills sharp in what’s possible within AI and the digitalization of the insurance industry. That’s why I’m here as CEO of Al Wathba, and we have a fantastic journey ahead of us. Al Wathba is a boutique multi-line digital insurer, if I may say so, where our focus is to be a one-stop shop for our customers—providing everything hassle-free and digitally. Because of how the world views insurance, we aim to be transparent and trustworthy. We pay our claims and keep our promises and make sure to explain our policies thoroughly.
BL: What are you planning to implement at Al Wathba Insurance?
Frederik Bisbjerg: Thank you, it’s a good question. Our strategy is simple on the surface—we aim to be more digitally protected, we want to grow, and we want our services to become more engaging. But more than that, I believe we are in a market where we can make a difference. We are big enough to matter, yet small enough to be nimble and change. If you look at the large insurers in our industry, they have the money and potentially the capability to make the required changes and grow, but they don’t. They are held back by legacy systems and internal bureaucracy and culture. So even though you see them trying to spend a lot on digitalization, they move very slowly and don’t get far. Other companies our size might have the agility, but they don’t have the financial muscle we do. We were just listed as the third most profitable insurance company in the UAE, so we have the funds to invest, and I must say we also have the right management team to execute our plans. These are the factors that I believe will make us succeed while others lag behind because they can’t.
BL: Currently, the reinsurers are at crossroads after difficult Jan 1 renewals due to the losses they have incurred from the latest earthquakes and natural hazards that took place in many countries. Consequently, they are now discussing new terms and new conditions so that they can continue and support this important industry, what are your comments?
Frederik Bisbjerg: As insurers, we adjust our prices based on our past experiences, and we expect reinsurers to do the same. We have a long and very strong relationship with many reinsurers in the region, and I don’t see any reason to rock the boat now. I believe in long-term partnerships and don’t believe in shopping around. You’ll also see that we will never be the cheapest in the market, and we won’t be the most expensive, but we aim to have pricing that’s affordable to our core target segments. This is to say, when we look at insurance terms and conditions, we prefer to work closely with the partners we have to understand how we can continue to do business together. We unite for now and for the future. Therefore, we’re not looking around to find the best possible terms right now, risking having to do the same next year and losing the continuity in our reinsurance business.
BL: Frederik, how will the oil prices impact the insurance and reinsurance rates?
Frederik Bisbjerg: The effect of oil prices will probably be more pronounced on reinsurance outside the UAE than inside. The UAE still enjoys one of the best economies and continues to grow in all sectors. Since we are a national insurer at the moment, these external factors will not significantly impact us. Of course, we are affected by the global situation, and we can see this reflected in recent prices. To reiterate, we have a growing market, a strong economy, and we need to adjust and adapt to the market for various reasons, but we are far from being as affected as other countries.
BL: What are your comments on the recommendations and resolutions of the 28th FAIR Conference & General Assembly especially that they are saying the reinsurance will continue” hardening”?
Frederik Bisbjerg: I believe the market will indeed continue to see adjustments in prices due to competition and the unsustainable pricing strategies that have harmed both the industry and the insured. The insurance industry seems to be coming together to work on getting prices to a more sustainable level. Nearly every insurance line has been hit by rising claims costs. What I hope we’re moving towards are long-term partnerships where we collaborate and share knowledge and not focus solely on short-term profit maximization. Historically, in the Middle East, there has been a heavy focus on cost and short-term profits, and that’s where the problems in insurance stem from—short-term thinking instead of looking ahead. I think the industry is reacting to this now. Whether you call it hardening, adjusting, or leveling, I’m not sure that “hardening” is the right term; it’s more about adjusting to appropriate pricing levels.
BL: Should corporations operate with the singular objective of maximizing shareholder wealth, what do you think of the profit margin?
Frederik Bisbjerg: Insurance is foundational to the modern economy, and as insurers, we have a significant responsibility to support economic growth. I’m proud that Al Wathba is playing an active role in strengthening the UAE’s economy. I believe that maximizing shareholder wealth is a prerequisite for running a successful business, but it shouldn’t be the sole objective. Our national role is to ensure accessible and affordable insurance to everyone, thereby improving the overall financial resilience of not only companies but also the residents of the country.
BL: Are you targeting an increase in profits during 2024 and how are you going to achieve it? Is it through introducing new products? So, what is your niche?
Frederik Bisbjerg: Insurance is foundational to the modern economy, and as insurers, we have a significant responsibility to support economic growth. I’m proud that Al Wathba is playing an active role in strengthening the UAE’s economy. I believe that maximizing shareholder wealth is a prerequisite for running a successful business, but it shouldn’t be the sole objective. Our national role is to ensure accessible and affordable insurance to everyone, thereby improving the overall financial resilience of not only companies but also the residents of the country.
BL: The globe is a small village, would you like to expand Al Wathba to new markets like Europe; like States or whatever?
Frederik Bisbjerg: Yes, but Europe and the States, with their heavy regulations, are probably the only two places I wouldn’t consider right now. Establishing a presence there would likely require acquisitions. However, I’m proud to have been part of establishing the first mini-MBA in digital insurance in Singapore, and my strong connections in Asia make it an appealing region for potential expansion. It’s a booming insurance market, and although we may not venture there immediately, we are open to exploring our options. In the Middle East, while the insurance sector is significant, life insurance is underdeveloped. I want Al Wathba to play a more active role in improving life insurance in the region.
BL: Thus, there is lack of awareness when it comes to life insurance in the Middle East. Are you going to work on this line of business?
Frederik Bisbjerg: Enhancing awareness and offerings in life insurance is a very possible option for us in the coming years in the UAE. We ought to consider expanding more than we currently are.
BL: Do you think about expansion maybe not in 2024 but maybe later into the Middle East or Egypt?
Frederik Bisbjerg: I can say yes to all your questions. Remember, my history has been opportunistic, and we do have strategies for future expansion. When the right opportunity presents itself at the right time with the right potential, we will certainly consider it. Egypt is a booming and interesting market. Once the regulations mature and we can start correctly, we’ll look into it. We need to be cautious, however, as low license prices in a booming market could lead to an influx of insurance companies, which may take years to stabilize. When we expand, we want to do so as a solid and trusted company. For Egypt, we might wait and watch until the market settles down.
BL: Are you planning to open a branch in Saudi Arabia?
Frederik Bisbjerg: There are several ways to engage with the Kingdom. One option could be to open a branch with a Takaful license. Another is to expand our digital capabilities to offer different insurance opportunities in Saudi. We intend to make our mark in the market digitally. Partnering with other companies could also be a strategy for insurance. Thus, we are looking at Saudi Arabia and exploring ways to participate effectively.
BL: During Baden Baden meeting 2023, the four reinsurance CEOs said that they cannot work like the old times, they have to change terms, conditions, increase prices and be more selective, what is your opinion? What is the impact of their decisions on the MENA’s insurance industry?
Frederik Bisbjerg: It’s an insightful question. The laws of market equilibrium will come into play—if the largest reinsurers agree to increase prices, it opens a market opportunity for strong second-tier reinsurers to capture significant market shares just below the price levels of the largest reinsurers. This loss of premium income will likely lead the largest reinsurers to reassess their pricing strategy, and thus, the market will reach an equilibrium once again.
BL: Do you have any question in mind that I forgot to ask you and you would like to talk about?
Frederik Bisbjerg: I don’t think we’ve covered the aspect of our people enough. We’re discussing market expansion, digital advancements, and the future of insurance and Al Wathba. It’s crucial to highlight that none of this can be achieved without a motivated and capable team. You will see us focus on talent development as one of our core strategies, not only now but in all our future endeavors. This is the essence of successful strategy execution.
BL: How digital technology is transforming the insurance industry?
Frederik Bisbjerg: The digital transformation in the insurance industry is a profound shift that’s impacting various aspects of operations, customer engagement, product development, and overall business models. Here are some key ways in which digital technology is transforming the insurance sector:
1. Customer Experience and Engagement: Digital technology has revolutionized how insurance companies interact with their customers. Online portals, mobile apps, and chatbots have made it easier for customers to purchase policies, make claims, and get support. This increased accessibility and convenience enhance customer satisfaction and engagement.
2. Data Analytics and Risk Assessment: The use of big data analytics has transformed risk assessment and pricing in insurance. Insurers can now analyze large volumes of data to more accurately assess risks, tailor policies, and set premiums. This includes using data from various sources like social media, wearables, and IoT devices.
3. Tailored Products and Services: Digital technology enables insurers to offer customized insurance products. Using data analytics, insurers can understand individual customer needs and preferences, and offer personalized coverage options.
4. Efficiency and Automation: Automation and AI have streamlined many insurance processes, from underwriting to claims processing. These technologies reduce the need for manual work, speed up processes, and decrease the likelihood of errors, resulting in cost savings and improved efficiency.
5. Fraud Detection and Prevention: Advanced analytics and AI are used to detect and prevent fraud, a significant issue in the insurance industry. These technologies can identify patterns and anomalies that might indicate fraudulent activity, thereby saving companies millions of dollars.
6. Telematics and Usage-Based Insurance: Digital technology, particularly telematics, has led to the emergence of usage-based insurance (UBI). UBI policies use real-time data to determine premiums based on actual usage and driving behavior, making insurance more personalized and often more affordable.
7. Blockchain for Transparency and Trust: Blockchain technology is being explored for its potential to enhance transparency, security, and trust in insurance transactions. It can be used for smart contracts, secure and transparent record-keeping, and reducing fraud.
8. Regulatory Compliance: Digital solutions also assist insurers in complying with regulatory requirements more efficiently. They can manage and report data more effectively and stay updated with changing regulations.
9. New Business Models and Ecosystems: Digital transformation has led to the emergence of new business models in insurance, such as peer-to-peer insurance and on-demand insurance. There’s also a growing trend towards creating ecosystems that integrate insurance with other services, like healthcare or automotive services.
10. Innovation and Competitiveness: Digital technology pushes traditional insurance companies to innovate to remain competitive, especially with the rise of InsurTech startups that are nimble and often more tech-savvy.
Digital transformation in the insurance industry is multi-faceted and ongoing. It’s fundamentally changing how insurance companies operate, deliver value, engage with customers, and manage risks. The future of insurance is likely to be even more intertwined with technological advancements, driving further innovation and change.
Furthermore, generative AI is poised to further revolutionize the insurance industry, enhancing customer engagement, content creation, risk assessment, product development, training, and fraud detection. Its integration into the industry’s digital fabric signifies a move towards more advanced, efficient, and customer-centric operations.
BL: What are the minimum requirements for cybersecurity insurance?
Frederik Bisbjerg: The minimum requirements for cybersecurity insurance can vary depending on the insurance provider and the specific policy, but there are several common controls and measures that businesses are generally expected to have in place:
1. Use of Multi-Factor Authentication (MFA): MFA adds a layer of security by requiring multiple forms of verification before granting access to an account or system. This is often mandatory for business email accounts and key business applications.
2. Backup Procedures: Insurers typically require businesses to have certain backup standards to qualify for a policy. This includes cloud backups with malware scanning, encryption, segmentation, and multi-factor authentication. For the most sensitive applications, offline and immutable backups are preferred.
3. Compliance with Regulations: Companies must comply with relevant cybersecurity regulations, which could include standards like the Network Infrastructure Critical Infrastructure Protection (CIP) regulations.
4. Regular Cybersecurity Training for Employees: Businesses are expected to conduct training on identifying and reporting phishing emails, handling sensitive information securely, and the importance of regular software updates.
5. Strong Security Controls and Protocols: This includes up-to-date antivirus software, firewalls, intrusion detection systems, and robust password policies. Regular software updates and patches are also crucial.
6. Comprehensive Incident Response Plan: An established and tested incident response plan is a common requirement, indicating a business’s preparedness to manage and respond to security incidents.
7. Separate Backups: It’s essential to have separate and multiple backups in different locations to ensure that data is protected even if one backup is compromised.
8. Endpoint Detection and Response (EDR) or Managed Detection and Response (MDR): Having EDR or MDR systems can recognize and mitigate high-risk or unusual behaviors, which is a crucial part of an effective cybersecurity program.
9. Pentest (Penetration Test) on File: Insurers typically want to see that a pentest has been conducted in the last 12 months to assess network vulnerabilities.
10. HIPAA or PCI-DSS Gap Assessment: If applicable, having a gap assessment on file for standards like HIPAA or PCI-DSS is another common requirement.
Meeting these requirements not only helps in obtaining cyber insurance coverage but also strengthens the organization’s overall cybersecurity posture. It’s recommended for all businesses due to the increasing rate of cyber threats and to help cover the costs associated with a breach, such as business interruption, credit monitoring services for affected customers, and public relations efforts.
