How to start an insurtech company in Dubai

While the rest of the world embraced technological advances and digital transformation, for many years the insurance insurance industry remained surprisingly stagnant. But, things are changing. In the few years, spurred by rapid technological advancements like artificial intelligence, data analytics, machine learning and blockchain, the insurtech movement has gained impressive momentum. In Dubai, the government is committed to accelerating insurtech innovation to help improve efficiencies and customer experience, partnering with local fintechs and introducing targeted incentives to make sure it happens. If you’re considering starting an insurtech company in Dubai, now is the time to do it.  In this article, we will walk you through the key considerations for starting an insurtech company in Dubai, looking at:

• What is an insurtech company?
• How to start an insurtech company in Dubai
• How to grow an insurtech company in Dubai
• Why choose Dtec

What is an Insurtech company?

Insurtech companies use technology to innovate and improve the traditional insurance process. These companies leverage the latest technologies to solve some of the most pressing challenges the insurance industry faces today, from underwriting inefficiencies to claims process delays to opaque pricing models.

Many insurtech companies offer digital platforms with user-friendly interfaces to allow customers to buy, manage and track their insurance products completely online. Data analytics and AI are enabling many companies to streamline the claims process and offer personalised pricing based on individual risk profiles, while blockchain can help improve transparency, reduce fraud and simplify the claims process too.

There are different types of insurtech companies. For instance, on-demand insurance allows customers to purchase insurance only when needed, which appeals to young, tech-savvy customers who might not need coverage all the time. Parametric insurance triggers a predetermined payout when specific conditions are met, making the claims process much more predictable for both the insurer and the claimant.  Peer-to-peer (P2P) insurance startups are experimenting with models where groups of people pool their resources to provide coverage for one another.

As customers increasingly demand and expect more personalised and customer-centric services, the insurtech landscape in Dubai is ripe with opportunity.

How to start an Insurtech company in Dubai

Starting an insurtech company in Dubai requires planning and a strategic approach to ensure you comply with local regulations and give your business the best chance of success from the get-go. We’ve broken down the process into four steps to give you an idea of what to expect:

Step 1: Refine your business plan

This step is important but easily forgotten in the excitement of setting up a new business. It is essential to take the time to define your niche and conduct market research early on. You will need to identify the specific area within the industry you want to specialise in. Popular options include health, cars and life. This will help ensure you can tailor your services to meet demands more effectively. Analyse the UAE insurance market to identify existing gaps and potential competitors. Once you have this information, prepare detailed financial forecasts to ensure you manage cash flow and secure the right amount of funding to sustain your business model.

Step 2: Finalise your business structure and jurisdiction

Next, you will need to decide on the legal framework of your company. Most insurtech companies tend to be Limited Liability Companies (LLC), but other options include Public Shareholding Companies and Sole Proprietorships. You will also need to decide on a jurisdiction, as this will affect the next step. That means choosing between a free zone and a mainland business setup. The key difference here is that mainland companies offer unrestricted access to the local UAE market, while free zones offer additional incentives, like 100% foreign ownership and repatriation.

Step 3: Get your license and any approvals

Once you have settled on a structure and location, you can register your trade name. Make sure it adheres to Dubai’s naming conventions and does not include any blasphemous words or abbreviations. You will also need to apply for a license to legally operate your business.

Step 4: Develop your infrastructure

Once you have secured the necessary permits and approvals, you can start investing in your technological infrastructure. You can also begin to recruit skilled professionals in insurance, technology and regulatory compliance. Marketing will prove essential for business growth, so invest in developing and executing marketing campaigns that promote your services and the unique value propositions you offer.

How to grow an Insurtech company in Dubai

Here are three tried-and-tested routes to growing and scaling a successful insurtech business in Dubai

Build strategic partnerships

As a newbie on the scene, securing partnerships is the fastest route to building credibility. At Dtec, we make this easier for entrepreneurs by hosting over 100 networking events every year, with plenty of opportunities to meet potential clients, partners and investors. Partnering with established traditional insurers could offer access to their customer base and allow you to benefit from their existing infrastructure. Building strong relationships with regulatory bodies will make sure you are compliant and have a say in how digital transformation can transform the industry too. Remember, hundreds of fintechs and startups will be willing to share resources, tap into new customers and co-develop new products, particularly in environments like Dtec.

Invest in digital marketing and brand awareness

Don’t forget about marketing. Use digital marketing platforms and influences to promote your brand to the right audience. More than 90% of Dubai’s population are ex-pats, so creating targeted campaigns that focus on their specific needs could be a fast track to growth. You should also use content marketing to reiterate the value of your product and establish yourself as a thought leader in the space.

Enhance customer experience with personalisation

We live in a world where customers expect every product and service to understand them, and those that fail to recognise this get left behind. Use the latest data analytics and machine learning technologies to offer personalised insurance products, from dynamic pricing models to pay-as-you-go offerings, to enhance customer satisfaction, build brand reputation and secure long-term trust and relationships. You could also focus on using digital platforms to offer a more seamless experience, with features like digital dashboards and instant quotes to appeal to Dubai consumers who rate convenience above all else.

Why choose Dtec

As the largest technology entrepreneur campus in the Middle East and North Africa, we know exactly how to help you start an insurtech business in Dubai. Built with startups, investors and corporates in mind, Dtec offers everything from 100% business ownership to visa processing to high-speed WiFi. For those looking for flexible co-working spaces, we boast 10,000 sqm of space dedicated to hundreds of startups, SMEs and technology entrepreneurs to ensure you start your business on the right foot. Interested in finding out more? Get in touch with our team of experts today to turn your insurtech business idea into a successful reality.