Hareez Sulaiman has been serving Insurance (Takaful) Industry since 2002. His extensive audit experience in international firms, backed by sound knowledge in finance, enabled him to make his career progression in the realm of ‘Takaful’ within a very short period of time.
Both academically and professionally, Hareez pursued his higher studies in the field of finance. He holds an Honors Degree in Accountancy from the International Islamic University of Malaysia and is an Associate of the Chartered Institute of Management Accountants (CIMA) in the UK. He has further enhanced his knowledge in Islamic finance by completing the study programmes in Islamic Finance offered by CIMA UK. Hareez has also completed Master of Business Administration from Cardiff Metropolitan University, Wales.
With 21 years of Takaful experience to his credit, he now heads the company as its Chief Executive Officer cum Managing Director.
Q: Can you provide an overview of your company’s operations in the general insurance sector in Maldives? How has the company grown and evolved since its inception?
A: Founded in 2003, Amana Takaful embarked on its operational journey as the pioneering Takaful institution in this Island nation. At its core, the Takaful concept embodies mutual support and collective sharing—“a system of fortunate many helping the unfortunate few“. With aproven track record of growth, positive response, and encouragement from the discerning Maldivian public, Amana Takaful underwent a strategic reconfiguration, assuming an independent status in 2011. In the same year, Amana Takaful (Maldives) PLC (ATM) was listed in the Maldives Stock Exchange as the first and only public quoted insurance service provider.
In a steadfast progression, the Company has consistently displayed annual expansion, propelled by inventive products and strategic business reach, thereby enlisting a large customer base from the Republic. ATM has carefully nurtured the Takaful Brand, creating awareness and zealously safeguarding its ethical nature.
Distinguished as the premier Takaful operator in the Maldives, we have acted as a beacon of reassurance for our customers, offering back-to-back innovative risk management solutions. Our unwavering dedication to meeting stakeholder expectations and enhancing shareholder value is deeply entrenched in our business philosophy. We are committed to continuously adapting to evolving dynamics, the competitive arena, and customer demands by consistently investing in technology and innovation. This approach ensures our continued relevance and effectiveness.
Q: Could you share your perspective on the current landscape of the general insurance industry in Maldives, particularly in terms of market trends, customer preferences, and emerging opportunities?
A: The landscape of the total industry premium has dramatically evolved, surging beyond the notable milestone ofMVR 1.18 billion (circa USD 78 Mn), as per the published statistics of the regulator, Maldives Monetary Authority (MMA). Currently, this dynamic sector is adorned with the presence of five prominent players, each contributing to the general insurance industry through an array of distinct solutions.
The non-medical product portfolio, including fire, engineering and hull classes, shows steady and significant growth. Concurrently the industry also witnesses the increasing demand for medical coverage for both locals and expatriates, resonating with an exponential growth of 84% over the preceding year.
Over a period of time, the awareness of insurance has created a good demand for numerous products. Swiftness and simplicity have become a clarion call as customers demand speedy solutions with ease of transaction.
Q: Risk management is an essential aspect of the insurance business. How does your company approach risk management in the general insurance sector?
A: ATM has consistently demonstrated its dedication to providing risk management solutions to its customers in a cooperative and ethical manner. Insurance companies offer what many consider to be risk-mitigating solutions. However, they themselves encounter a diverse array of risks necessitating prudent management.
Like any other insurance entity, ATM is exposed to a spectrum of risks, encompassing underwriting risks, market volatility, regulatory compliance risks, investment uncertainties, credit risk and the specter of catastrophic events. In order to maintain our financial stability, profitability and protect the company’s reputation, risk management measures are essential.
The Company’s Risk Management Strategy is to operate within the risk appetite guidelines set by the Board Risk Committee, which are periodically reviewed, keeping a vigilant eye on the evolving corporate and macroeconomic risk landscape. At the core of our operations lies a comprehensive Enterprise Risk Management (ERM) framework that operates on a bottom-up approach in terms of lines of defence. The scope of ERM is widened given the increased level of awareness, changes in the business environment and emerging risks such as cyber security and ESG risks.
In practical terms, we have established robust underwriting standards to evaluate the risks associated with existing and prospective clientele. Prudent underwriting techniques that involve the evaluation of prospective customers’ risk profile, financial stability and claims history are carefully scrutinized before issuing a policy.
We have devised strict internal policies to ensure that every single risk that we underwrite shall be backed by reinsurance agreements. Our emphasis is unequivocally placed on selecting renowned and rated Retakaful/reinsurance markets, instilling unwavering confidence in our customers and helping reduce the financial impact of large and catastrophic claims. When many companies go for ‘Self-insure’ options, ATM is stringently focusing on entering into contractswith reputed and rated reinsurance entities.
ATM also conducts scenario analysis and stress testing to assess how the company would perform under various adverse conditions, which will help us identify vulnerabilities and areas that require additional risk management measures. We also consistently take steps to implement robust system controls to prevent cyber-related risks.
We strongly believe that a well-balanced risk management strategy will help us navigate uncertainties and ensure long-term sustainability.
Q: Technology plays a crucial role in transforming industries. How has your company leveraged technology to enhance its operations, customer service, and overall efficiency? Are there any specific technological initiatives that you have implemented?
A: Every industry is capitalizing on technological transfor-mation, and the insurance industry is no exception.
ATM’s diligent effort continues to bring ease to transactions by digitalizing its solutions. Dynamic technological advance-ments serve as the cornerstone of our operational efficiency. We steadfastly strive to provide a smooth customer journey while serving their needs swiftly and conveniently. Our efforts have collectively enhanced the service levels in line with convenience for our valued partners as well. ATM’s focus on the constant evolution of core and support systems to cater to the need of the tech-savvy populace is its key priority.
Our initiatives on system automation and the launch of new platforms and front-end systems with simple steps have further boosted the confidence of users. The nifty platforms developed over the years are the catalysts filling the vacuum in insurance selling. Our focus on technology has created an unprecedented market space, penetrating into untapped segments in this dispersed geography.
Q: In recent years, there has been a growing emphasis on customer-centricity in the insurance industry. How does your company prioritize customer experience and satisfaction? What measures do you take to ensure prompt and fair claim settlements?
A: We focus on key initiatives that bring exceptional value to our valued customers while also making our business operations smoother and more efficient.
Our approach centers on obtaining customer feedback and suggestions to continuously improve our processes. This dedication to improvement ensures that our customers enjoy a seamless and convenient experience. We are committed to making every interaction comfortable and satisfying for our customers.
Swift and prompt settlement of claims in our service ethos. As the pioneer in introducing cashless services, our customers greatly appreciate the initiatives. This innovation not only provides direct and immediate access to services but also saves valuable time. Furthermore, we build strong partnerships with carefully chosen service providers, consistently refining and enhancing our processes to create an exceptional medical claims experience. This commitment elevates customer satisfaction to new heights.
Even for general claims, we set high standards, working diligently to improve our processes and achieve swift claim settlements within an exceptional timeframe. Our guiding principle is one of unwavering efficiency, ensuring that each claim is processed quickly and smoothly, minimizing any delays along the way.
Q: As an insurance company operating in the Maldives, what are the unique challenges or opportunities you face in serving the local market? How do you tailor your products and services to cater to the specific needs of customers in Maldives?
A: Over the span of the last forty-five years, this nation has witnessed the provision of insurance services. However, it is a matter of concern that, up to this point, the enactment of an Insurance Act has not come to fruition.
We eagerly anticipate the enactment of the forthcoming Insurance Act, which is expected to infuse the industry with positive vibes. We believe in the Regulatory Authority’s commitment to its creation, involving industry stakeholders and players. This collaborative effort underscores our shared dedication to fostering an operational environment characterized by ethical standards and adequate checks and balances.
Another noteworthy challenge lies in the elevated frequency of claims in both the medical and non-medical categories. Specifically, the medical class has experienced substantial claims ratios, leading to negative underwriting results spanning five consecutive quarters. To ensure the viability of the medical class, prioritizing prudent steps to overhaul product features and underwriting practices is imperative. Likewise, the non-medical categories have also reported frequent claim occurrences, compelling the industry to revitalize its offerings during policy renewals.
Conversely, opportunities abound in the landscape. As economic activities flourish, both the corporate and retail segments are undergoing exponential growth. The industry is poised for sustained expansion, courtesy of government-imposed insurance requirements for corporations and the public. Concurrently, government-led infrastructure development projects and housing initiatives across the archipelago pave the way for industry players to delve into diverse sectors, promoting their insurance/takaful services. We are focusing relentlessly on meeting and catering to such needs.
Over the next few years, we will see a shift in customers’ mindset toward understanding the need for insurance. Recent times have borne witness to interest among the public in procuring more non-mandatory coverage.
Q: With the increasing frequency of natural disasters and climate change concerns, how does your company manage and underwrite risks associated with such events? Are there any specific initiatives or partnerships focused on sustainability or environmental protection?
A: ATM is meticulous in its approach to underwriting, implementing strategies that effectively manage various risks. Our underwriting philosophy has been carefully formulated, taking into account factors such as type of risk, construction materials, accumulation and the insured’s mitigation efforts aimed at reducing perils associated with natural losses. Collaborating with top-rated reinsurers not only allows us to distribute risk but also grants us access to invaluable insights and expertise in handling catastrophic events. Our commitment to ensuring resilience extends to every property we underwrite, involving independent inspections and recommendations in consultation with experts and reinsurers, thereby aiding policyholders in implementing robust measures.
Furthermore, a comprehensive analysis of historical data on natural disasters, particularly incidents involving tidal waves, CST, and sea erosions, informs our risk assessment. This diligent examination allows us to gauge the potential frequency, severity, and geographical spread of such events. Looking ahead, our future plans involve integrating advanced risk assessment tools that factor in dynamic variables such as sea-level rise and extreme weather occurrences. Our focus will also be on refining risk mapping and zoning systems to precisely identify areas susceptible to specific natural disasters. This strategic approach will aid in establishing fitting coverage limits and effectively evaluating exposure to risk.
In tandem with our underwriting efforts, our responsibility encompasses educating our clients about the risks they face and the importance of adequate coverage. Our recommendations and suggestions to improve risks shall encourage them to take preventive measures to reduce their vulnerability.
The perception of Maldives being prone to catastrophic (CAT) exposure needs to be improved among the reinsurance community. The appetite of reinsurers to cover Maldivian risks is a general concern. Emerging worldwide CAT losses have further made re-takaful/reinsurers revisit their choices, resulting in more stringent policy underwriting.
One effective approach entails the use of advanced modelling techniques, not solely restricted to natural catastrophes (NAT CAT) but extending to encompass a broader spectrum of medium-range perils. This initiative involves systematically gathering comprehensive statistical data specific to the Maldives region.
Given its unique archipelagic position, Maldives is exposed to an evolving array of natural and human—made challenges, necessitating insurers to stay attuned and updated.
Q: Can you share any recent developments or innovations in your general insurance products or services? How do these advancements benefit customers and set your company apart from competitors?
A: We have diligently concentrated on several pivotal initiatives poised to yield significant advantages for our valued customers:
- Digital Transformation: Insurance companies have been investing in digital platforms and tools to streamline their operations and enhance customer experience. This transformation, expedited by the post-COVID era, acknowledges the escalating adoption of technological platforms. Among the notable advancements are online policy purchasing, claims processing through mobile apps, and virtual assistance for customer queries. These advancements make insurance processes more convenient, efficient, and accessible for customers.
- Personalization: The fusion of advanced data analytics and artificial intelligence (AI) enabled companies to personalize their offerings. Customers are now presented with insurance packages meticulously tailored to their individual requirements, encompassing domains such as home, auto, or health insurance. This personalization meets customer preferences and ensures they are only paying for the coverage they truly need, creating the right sense of belongingness to insurance solutions.
- Cyber Insurance: With the relentless surge in cyberattacks and data breaches, the demand for cyber insurance has grown. This specialized coverage empowers both businesses and individuals to mitigate the financial repercussions of cyber incidents.
- Ecosystem Partnerships: Companies are increasingly partnering with other industries to provide comprehensive services. For instance, offering insurance coverage from travel agencies or auto suppliers and partners is a good example. This provides customers with a seamless experience and coverage tailored to their activities.
- Speedy Claims Processing: Automation has facilitated a new era of rapid claims processing. Customers can upload images or documents directly through apps, and back-office staff are readily available throughout a long period to process claims. In some instances, there are insurance providers with advanced technologies, such as AI, that are powered to assess the damage and calculate payouts quickly. This holistic approach reduces the burden on customers during moments that are often riddled with stress and hassle.
Q: Are there any emerging trends or opportunities that you believe will shape the industry’s trajectory in Maldives?
A: With an increase in homeownership attributed to government-led social housing initiatives, a greater number of individuals are taking a more vigilant approach toward safeguarding their possessions and loved ones. This demographic predominantly comprises nuclear families, who are inclined towards procuring health insurance, either through employer offerings or personal subscriptions. Moreover, this segment aligns with the working populace, presenting a vibrant pool of prospects for upselling and cross-selling various retail products.
The other opportunity on the horizon is public sector infrastructure. The rapid expansion of national public infrastructure projects has given rise to a demand for insurance solutions to protect these critical assets.
A forward-looking step is to introduce more insurance government-mandated insurance policies. These policies are meant to help the government handle the costs during emergencies like domestic fire incidents where the government provides internally displaced people with food, shelter etc. Furthermore, regulatory initiatives encourage boat owners to secure mandatory coverage for their vessels, which are the livelihoods of people living in islands.
Shifting the focus to governance, the commendable efforts of the MMA in enacting Corporate Governance Regulations for financial institutions mark a positive stride. It is our belief that the establishment of consistent and robust governance practices within the financial ecosystem will strengthen public confidence in the operations of these institutions through effective implementation.
Q: Any other information that you would like to share with our readers?
A: In the vast realm of industries, each sector grapples with its distinct set of challenges. The insurance landscape is no exception.
To thrive in this dynamic environment, players must dedicate themselves to the pursuit of innovative solutions that outshine their rivals. In the quest to stay ahead, unwavering focus on cultivating customer trust becomes paramount. The healthy competition that fuels these efforts encourages continuous elevation, pushing boundaries, and fostering innovation.
While competition is undeniably crucial, it is essential to look at the immense value of collaboration in tackling shared obstacles. There are common challenges faced by all players, which commonly have a negative impact and can question the way forward. Embracing the power of collaboration empowers us to collectively address these issues head-on. This collaborative spirit is pivotal in constructing a resilient industry that stands the test of time and helps build a sustainable industry, cultivating trust from stakeholders over the long term.
