Sandeep Singh, Senior Director, Regional Head Central Eastern Europe, Middle East, and Africa, Franklin Templeton Investments • Interview

Sandeep Singh

SENIOR DIRECTOR, REGIONAL HEAD CENTRAL EASTERN EUROPE, MIDDLE EAST, AND AFRICA, FRANKLIN TEMPLETON INVESTMENTS

How did the market’s performance align with expectations, and how do you evaluate opportunities in 2020, particularly as we approach Expo?

Unfortunately, the market did not see the expected pick up in 2019, mainly due to factors beyond the UAE’s control. There are hopes that we will see a slow pick up in the second and third quarters of 2020. The areas that will see immediate pick up will be construction, trade, and tourism. Transportation is also expected to grow in 2020.

What does innovation look like at Gargash Insurance?

Integrating and adapting technology is mission critical for sustained growth. It clearly helps, especially those in the service industries, to reduce their costs of doing business, though it also requires huge capital investment in the near term for long-term benefits. Companies that are not in a position to make this upfront investment in technology will find it challenging to survive in the medium term because those who invest and expand their IT, AI, and similar capabilities will be able to operate more efficiently and cost effectively. Gargash is excited about the various initiatives it is taking, including some groundbreaking technology interface with underwriters in 2020. This will enhance delivery and customer satisfaction. Such platforms will be the precursor for AI solutions and analytics, taking the insurance and business ecosystem to greater heights.

Given the competitive landscape, how does Gargash differentiate itself, and what is the value of having an insurance intermediary?

By now, the market is developed well enough to appreciate the value addition a professional intermediary can bring to the customer with regard to value engineering and risk management. For Gargash, as a leading professional intermediary, we need to deliver our services far beyond customer expectations. Everyone is under pressure in terms of their bottom line, and therefore customers are looking for quicker response times from us. This means there is more price pressure on insurance companies in what has always been a competitive market. However, we have found it better to compete in terms of quality and not price. Dubai’s strategic positioning is of great advantage to any business that has its central operations based here. We are fortunate that we are well established in this regionally and globally strategic location.

How does this position you to expand beyond the UAE, and what opportunities are you seeing regionally?

Our vision is that with the ongoing integration of technology in the GCC, the regulators will be have to adapt the law and its practice to permit regional and interstate business transactions without typical brick-and-mortar offices. From our point of view, if we come across the right opportunity in any of our neighboring markets, we will not shy away from investing. While this is happening regionally, our focus is to remain the leading national professional intermediary in our local market with an emphasis on facilitating ease of business transactions for our customers, both corporate and individual. ✖

Expo 2020 is expected to bring together the best of trade, innovation, and products from all over the world to the UAE. As a result, the growth prospect is enormous. GDP is expected to grow by minimum 5%. The increase in consumption and tourism is predictable, with an estimated 25 million visits to the event, thousands of jobs, and an approximated USD82 billion worth of projects in the areas of housing, entertainment, and infrastructure by 2020. All the above will have an impact on the whole insurance sector, Chedid Re, and the insurance lines on which we have the expertise and know-how.

When motor and health insurance became mandatory, what impact did it have on your company?

Since we offer a complete solution to our clients, we have specialized departments within our treaty operation that handles medical and motor business. Using our regional volume and expertise helps us putting treaties for the insurance companies to better position ourselves as pioneer in these lines of business. Therefore, the impact of the motor and health insurance lines was sizable in our books since their mandatory implementation in 2017.

Developers witnessed a crisis that can’t be simply overlooked and neglected. It would have an impact on their appetite for the short run. However, the long-term confidence with the market is still there, and it is only a matter of period that their activities would resume with the same previous pace assured by the vision of Sheikh Khalifa Bin Zayed Al Nahyan, Sheikh Mohamad Bin Rashid Al Maktoum, and the leaders of the UAE.

What does the Dubai office bring to the group, and do you have any expansion plans?

You cannot be a part of a serious financial institution in the Middle East without having a footprint in Dubai. Being present in Dubai, we are close to the decision making that have an impact on the insurance industry across all the region. Dubai became an international hub for the financial institutions not only for its regional presence. Because we have expansions plans beyond the region, we strongly believe Dubai is a gateway passport. ✖