Life insurance penetration in the UAE is only 0.7 percent, compared to 9.6 percent in the UK, but the UAE Insurance Authority Decision is likely to Unidos No. 49/2019, which went into effect on October 16, triggers a significant increase in interest. The consumer looks for insurance products, specifically by mitigating their concerns about what is being sold to them or what are the hidden fees.
"We welcome the new regulation from the UAE Insurance Authority, which focuses on increasing value and transparency for customers," says Dimitris Mazarakis, General Manager of MetLife Gulf, one of the leading providers of products in life and savings, medical products, accident and health products in the United Arab Emirates. . "It will transform the market forever and allow insurance companies in the region to operate in a more transparent and customer-centric way."
The new regulation, also known as BOD-49, specifies that all fees or charges must be explicitly shown to the customer. It also offers a minimum 30-day free appearance period. So if customers buy a policy and change their mind within 30 days, they are guaranteed a refund.
In addition, post-sale verification requirements have been updated. Insurance companies must now obtain mandatory verification of policy features from clients. This ensures that customers are aware of the important aspects of the product and can reconfirm whether the product suits their needs. Interestingly, the decision specifies that when selling any investment product, an illustration must be shown to potential clients to clearly understand the expected growth of their investment.
Meanwhile, fees have been established for insurance consultants and distribution channels to ensure greater value for the client. While there are concerns that lower commission income could crowd out some advisers, the expected increase in penetration is expected to boost the life insurance market and offset the drop in commission rates.
Products that comply with BOD-49
Nearly 60 years of local experience, combined with extensive market research and collaboration sessions with its clients and strategic partners, have enabled MetLife Gulf to offer products that meet the diverse and changing insurance needs of consumers in this region.
Not surprisingly, MetLife has focused its efforts on adopting and adapting the changes brought by BOD-49. MetLife's new life insurance products are carefully designed to maximize customer end value and provide more transparency on how they are explained and sold. The new offerings provide a wide range of comprehensive world-class life, savings and protection solutions for the citizens and residents of the United Arab Emirates.
In fact, MetLife was one of the first insurance companies in the UAE to launch BOD-49 compliant value propositions using its distribution channel. Products include Live Life, which is a pure lifetime protection product; Investor Advantage, a different savings product; And Future Protect, a hybrid protection and savings product.
MetLife retail products provide integrated and optional protection to support the wellness and recovery of policyholders in the event of serious injury, illness or accident. To support changing customer needs at any stage of life, the solutions provide flexibility in terms of payment options, coverage terms, and location. With the exception of sanctioned countries, MetLife Life products are portable - customers can take advantage of the company's global presence and an enhanced digital self-service platform to manage and claim their policies, even if they leave the UAE for another part of the world. This is particularly beneficial given mass immigration and re-entry. Location caused by Covid-19.
MetLife also took the opportunity to revamp its Group Life products so that employers can offer value-added benefits to their employees, such as employee assistance programs, providing in-person and telephone support on a variety of mental health issues, and support. for the financial well-being of the beneficiaries.
"At MetLife, we truly believe that keeping our promise to customers is not only our moral duty, but also our responsibility," says Mazarakis. For this reason, we have made sure to stay at the forefront of the market and drive the shift towards a more customer-centric future.
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