AXA, one of the largest international players in the GCC and the no. 1 global insurance brand* for the 10th consecutive year, has some helpful advice for SME businesses.

Small and Medium Enterprises (SMEs) are the backbone of Dubai’s economy, representing 95% of all establishments in the Emirate. These SME businesses account for 42% of the workforce and contribute around 40% to the total value add generated in Dubai’s economy.

The significance of the role played by SMEs cannot be understated as it was acknowledged by the UAE Government during the announcement of their 2019 budgets earlier this year. The government highlighted their support for small enterprises by promoting entrepreneurship and creating an incubator environment for microenterprises.

Despite this, there is a lack of small and medium enterprises which have sufficient insurance that can help mitigate risks and avoid large financial repercussions.

Speaking about SME protection, Ricardo Arroyo, Chief Commercial Lines Officer at AXA in the Gulf, said: “Dubai is acknowledged as one of the easiest places to establish an SME business and the government is stimulating entrepreneurship in the emirate through economic incentives that will attract more investment. However, despite the resilience of small businesses in the UAE, many are unprepared for the challenges they can face after setting up.”

AXA is keen to encourage SMEs to seek an appropriate level of cover so that they receive comprehensive protection against threats, which can affect their day-to-day operations.  To this end, AXA has identified the five biggest challenges and reasons for SMEs to seek insurance coverage:

  • EQUIPMENT BREAKDOWN:  Incurring costs of unforeseen damage to equipment or hardware can be very expensive. A strong insurance plan can help SMEs to cover the costs of repair or replace the required equipment.
  • PROBLEMS WITH SUPPLIERS:  Some SMEs that are reliant on a specific segment can also be affected if their suppliers face issues (such as damages during distribution or challenges in delivery) – making it imperative to be covered if they don’t have a backup plan.
  • CYBER ATTACKS:  It is estimated that the cost of cybercrime globally will rise to USD6 trillion annually by 2021. Furthermore, the average cost of cyber-security can amount to USD85k-USD150k for SMEs. With start-ups increasingly looking to innovate and capitalise on the operational efficiencies that digital platforms can provide, many SMEs find themselves inadequately prepared to deal with the consequences of a cyber-attack and may not have the finances available to recover if not adequately insured.
  • OFFICE INSURANCE: Any office space can be susceptible to an unforeseen accident such as a fire, which can result in large damages. At a small and medium enterprise, office damages can have far more consequence on business operations in comparison to a larger company.   
  • LOSS OF WAGES: In the event that an SME is financially overleveraged or is unable to pay its employees due to lack of funds, having insurance that ensures workers’ compensation can be critical. Not only does this fulfil any obligations towards staff, but it also ensures that the business cannot be sued for negligence.

Ricardo continued, “Successful SMEs in the UAE have registered strong compound growth over the last few years. Our experience shows that for these businesses, insurance plays a key role. Maintaining adequate cover for SMEs is vital, as unlike large companies, SMEs operate on small margins and the smallest disruption or jump in operating costs can paralyse their business model.”

“AXA is a business partner for all your SME insurance needs. Our Business Secure pack includes all of the essential covers under one policy with additional elements designed specifically to suit a wide variety of business activities that includes retail outlets, beauty salons, restaurants/cafés and hospitality. Our dedicated team of experts can advise you on the best solutions to protect your business.”

As the no. 1 global insurance brand, AXA offers great cover at competitive prices. For more information, visit www.axa.ae  

*As per Interbrand 2018 ranking.

-Ends- 

ABOUT AXA

AXA, one of the largest global insurers, is a worldwide leader in Insurance and Asset Management with a purpose of empowering people to live a better life. In the Gulf region, AXA has been present for more than 68 years, offering a wide range of insurance products and services for corporate, SME and individual customers.

AXA in the Gulf is one of the largest international players in the G.C.C., covering the UAE, Oman, Bahrain and Qatar markets, with a workforce of over 780 employees, 20 branches and retail shops region-wide and over 1 million customers. With a range of products and services tailored to each customer, covering property & casualty insurance and life & health insurance, AXA in the Gulf is a multi-lined one-stop shop insurer.

Additionally, AXA is focused on helping the world better face climate risk, whilst also extending protection and risk knowledge to the public, in an effort to contribute to global economic development and become a trusted partner for customers in the region.

Recognised as a leading insurance brand, AXA has been winning several awards for its quality of services and products, and remains the no. 1 global insurance brand* for the 10th consecutive year as per Interbrand 2018 ranking. For more information visit www.axa.ae 

FOR MORE INFORMATION:
AXA:                                  
Tony Hamad
Regional Brand & Communication Manager
Tony.Hamad@axa-gulf.com
+971 4 447 6181 

WEBER SHANDWICK:
David Ross
Senior Account Director
DRoss@webershandwick.com
+971 4 445 4260                                                 

IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and AXA’s plans and objectives to differ materially from those expressed or implied in the forward looking statements. Please refer to Part 4 - “Risk factors and risk management” of AXA’s Document de Référence (Annual Report) for the year ended December 31, 2016, for a description of certain important factors, risks and uncertainties that may affect AXA’s business, and/or results of operations. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

© Press Release 2019

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