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Lack of Awareness about Asset Protection Putting Businesses at Increased Financial Risk
Dubai, United Arab Emirates - Small-to-Medium Enterprises (SMEs) in the UAE that do not have sufficient insurance cover risk facing serious financial repercussions, warns Nexus Group, the region's largest financial advisor.
With SMEs representing more than 94% of businesses in the UAE, accounting for 86% of the country's private sector workforce, and contributing to more than 60% of the country's GDP (Ministry of Economy figures as reported by the Emirates News Agency, WAM), comprehensive protection of these businesses' valuable assets is of fundamental importance to their survival and growth, according to experts.
However, financial advisors say many SMEs both in the country and the region still do not have the protection they would need in the event of an emergency. In a recent survey undertaken by AIG, in which SME clients were asked why they purchased insurance, mandatory coverage and contractual obligations were the top responses.
"What we have generally observed in the UAE and the region is that many SMEs unfortunately do not recognize the importance of insurance - the focus is on what is required as opposed to what is advisable. This can be attributed to many factors, but predominantly a lack of awareness and an insufficient understanding of the significant benefits of asset protection," says Phil Ashkuri, Head of General Insurance at Nexus Group.
"By forgoing insurance, businesses are essentially without liability protection, placing their assets at financial risk. Continuous education of SMEs on the benefits of insurance and its protective role is critical to reducing the number of uninsured businesses. Educating companies should be a community-wide effort - financial advisors must guide their clients, and providers have a responsibility of tailoring products that meet the requirements of the local market," Ashkuri added.
Nexus Group has now added AIG's multiline insurance product to its portfolio, enabling SMEs to group their insurance requirements - from property cover to workmen's liability - into an affordable package.
"This 'bundled' approach to SME protection offers businesses economies of scale. As opposed to having half a dozen policies, where minimum premiums could apply for each, having one multiline policy allows for reduced costs, improving efficiencies for all parties - the insured, the broker, and the insurer," said Melina Argyriou, SME Package Manager MENA at AIG.
"In the event a claim would involve more than one policy requirement, having a single claims department handle all aspects of the claim greatly improves the speed with which the claim will be processed, allowing the insured to return back to business more quickly," Argyriou added.
Insurance policies offered by AIG are fully tailored for the UAE market. The coverage provided is suited for the vast majority of SMEs, whether they are onshore or operating out of a free zone, where specific and different insurance requirements may apply.
"We understand that SMEs are a pillar of the UAE's economy, and their sound operation will help ensure the country's sustainable business growth," concluded Ashkuri.
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About Nexus Group of Companies
Nexus Group is the largest independent financial advisor in the GCC region, and one of the largest in Singapore, offering a complete range of insurance, savings and investment products to both corporate and individual clients.
With fully qualified professionals, Nexus is a highly trusted company. And as an independent organization, free from ties to a particular product provider, it can meet diverse customer needs with carefully selected solutions from the world's foremost financial services & insurance companies.
Nexus has over 550 qualified professional consultants, and is supported by over 160 dedicated and skilled support staff and managers across Nexus Group offices, offering a broad range of licensed products from regulated providers.
The company was established in 2006 by Mahmoud Nodjoumi, Founder and Chairman, through a management buy-out of the distribution arm of Zurich International Life in the Middle East which had been established in the region since 1989.
With over twenty-five years of experience, Nexus operations are located in Dubai, Abu Dhabi, Qatar, Lebanon, the Kingdom of Bahrain, Kuwait and Singapore to underpin a professional and high level of service to our clients.
Nexus Group is regulated for the provision of life insurance, savings plans, corporate pensions, group medical, and life programs, as well as various classes of commercial insurance, including employee benefits.
Media contact
Manal Ismail, Wallis Marketing Consultants, +971 4390 1950, nexus@wallis-mc.com
© Press Release 2016
