By Shujaath Ahmed Khan
Shujaath Ahmed Khan, an M.B.A., General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate, is a freelance writer and a weekly columnist for Saudi Gazette, he can be contacted at shujaathahmed@yahoo.co.in, website-www.creativeassociates.blogspot.com.
Insurance Industry is experiencing the growth and challenges never seen before. Saudi Arabia has seen the regulation of Insurance companies and Insurance related service providers.
In this scenario there is a greater demand for qualified and professional manpower in the Industry. We have with us one of the most qualified and highly experienced expert on Insurance in Saudi Arabia, Mr. Mohammed Sadullah Khan, a Master of Business Administration, a fellow of Insurance Institute of India and an Associate of Chartered Insurance Institute of U.K. with an experience of 22 years in Insurance Industry. He has also done numerous market research studies on Marketing and Insurance. He was one of the few experts of All India Motor tariff of 1989. He was also an expert on Workmen Compensation tariff and was also consulted for his knowledge in Medical, Property and other Insurances.
He came to Saudi Arabia in 1994. He is well respected for his knowledge and is basically a true guide and a customer’s man. He believes in the concept “Customer is the King”. He had guided many into professional courses and is able to solve any insurance related query with ease.
I was one of his fortunate students in the Insurance field. He is the brain behind my Insurance Q & A, my source and inspiration. Here are the excerpts of the talk with him.
Q-You have completed almost 14 years in Saudi Arabia. How do you feel the difference between the initial years of your work and the current scenario?
MSK - During 1994, there was less awareness about Insurance. Some people refused to accept gifts and even visiting cards from Insurance Personnel. Compared to Indian Market the insurance Industry was way ahead as far as IT implementation was concerned, but in terms of expertise we were far behind. NCCI (Tawuniya) was in the forefront of popularizing Insurance. Other companies were just content with their shareholders business and marginal increases in their portfolios. There was huge variation in terms of risk perception. As far as Insurance is concerned I used to feel that Americans are more conscious of Insurance than anyone else. However I had an American, who was not willing to drive his car into the garage, which was two meters away from his parking place unless I confirmed him insurance cover by way of official letter sent by fax. On the contrary another American had not insured his car even for Third party risk for the past 14 years.
Today there is greater awareness about insurance. The importance and respect of insurance personnel has increased. The insurance companies are on better terms. However regulation will increase the load of work of insurance personnel and bring in about more responsible competition.
Q -Can you tell us how one can become expert in Insurance field?
MSK - The Insurance field is so wide, varied and it is growing rapidly. Now we have more than 100 different types of coverage’s. Hence no one can become expert in the entire field. Someone working for the insurance Industry for 50 years also cannot claim to be an expert in Insurance. When the all India Motor tariff was revised back in India most of the experts in old motor tariff felt as if they have suddenly become novice. However a person can become an expert in one or another area of Insurance. The best way to gain knowledge is to read, practice and get professional qualifications. In this market I do not find job rotation, in fact this helps in better understanding of the Insurance in totality.
Q-Many companies are struggling to tap into the Personal Lines Market and Bancassurance. What do you have to say about these segments of Insurance?
MSK - In Saudi Arabia as far as buying of personal lines Insurance is concerned, the market is still in infancy stage and it may take another 5 years for this segment to fully mature. There is little potential in these areas but the income and revenue generated does not justify the effort. Many companies have developed internet based certificates and pre-signed certificates to generate more business in these segments. However they are unable to gain any major successes. The rate of internet usage for commerce is very low in Saudi Arabia.
Q - What will be the over-all potential of Insurance in this country?
MSK - The increase in oil prices has pushed the pace of economic development. On part of government, they have done their best to implement the regulation of Insurance Industry and implementation of mandatory insurances. The Insurance Industry is expected generate an additional premium income of approximately SR. 25 billion in next few years. The GWP for 2007 was at SR. 9 billion. This will give a fair share of work to the companies who are registered with SAMA in the coming years. There may also be few fatalities. We also need qualified manpower to handle this sort of business professionally. More educational institutions will be springing to provide the much needed training to the insurance industry personnel.
Q - What do you like most about Saudi Arabia?
MSK - I liked the culture of Saudi Arabia and the people over here locals and expats alike. Ramadan fasting and prayers (including Tarawi) are the best. The culture of Saudi is also in consonance with my thinking. May be after almost 20 years I will be having my Ramadan fasting in my native place i.e., Hyderabad.
Q - One last and final question, we have heard that you have decided to leave Saudi Arabia for good?
MSK - This is the question, which I do not want to answer. However I can tell you my parable, I feel as if I am airborne and my engines are switched off, I am trying to find a safe landing space and I don’t know where I will land.
