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A leading telecoms firm and one of the largest insurance companies in the country have joined hands for an ‘insurtech’ venture that’s eyeing a largely untapped market.
A combination of the words insurance and technology, insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model.
Takaful (Sharia-compliant insurance) leader Solidarity Bahrain and stc Bahrain expect to profit from the low rate of penetration in the kingdom’s insurance market (just over two per cent) and are also keenly awaiting the roll-out of a compulsory medical insurance scheme, which was planned to come into force in 2020, but has been delayed since due to the Covid-19 pandemic.
The insurer’s chief executive Jawad Mohammed told a virtual media briefing that the low level of penetration in the kingdom’s insurance space offers a tremendous opportunity for insurtech.
“Through this partnership with stc Bahrain we look forward to taking an active role in meeting the growing demand of the insurance needs and flexible payment options in the local market,” he added.
Mr Mohammed also said they would look to enter the medical insurance sector soon.
For now, the partnership allows the telecoms firm to offer motor insurance under its stc protect digital insurance platform.
A range of insurance services ranging from device insurance, extended warranty to travel insurance, roadside and home assistance, were already on offer under stc protect, the umbrella brand for insurtech products and services.
Commenting on the expansion of its portfolio, stc Bahrain chief executive Nezar Banabeela said: “Our partnership with Solidarity puts us in a unique position as a digital enabler to accelerate the transformation in the insurance sector, diversify our business lines, empower and connect a wider consumer base through stc protect.”
The arrangement enables stc protect to offer new payment channels for a range of motor insurance products from Solidarity, in addition to traditional debit/credit card payments.
stc subscribers will now have the flexibility to pay insurance premiums through monthly instalments charged to their postpaid line.
The platform will also allow customers to manage their policies online and submit claims.
