Oman Insurance plans e-business cover

Oman Insurance Co (OIC) plans to bring out a new product offering cover to companies against potential risks associated with their e-business operations.

The product could be rolled out before year end, and would be the first of its kind in the Middle East, confirmed top OIC officials.

Lloyds of London is one of the international majors associated with OIC on this initiative. Apart from the UAE, the cover could be offered to companies elsewhere as OIC holds the Middle East rights, officials added.

"We did a feasibility study for this, and while awareness may be less at this point, OIC believes that demand can be created over the long term. Otherwise, we would not have done so if we felt there would not be any customer for it," said Abdul Rahman Saif Al Ghurair, chairman of OIC.

"At OIC, we do not wait until the customer comes to you for a particular line of cover."

Added Abdul Muttalib Mohammed, general manager, "Issues such as cyber crimes are the risks companies will have to deal with in the future, as more of them start to do e-business. For the new product, we have the back up of first-class security.

"There are a lot of new insurance products on the table we are looking at. But these will have to be tailored to the requirements of the market.

"Before you bring out anything, one needs to look many times how you are going to cover for it. We were the first to bring out covers for unemployment and mobile phone losses."

OIC had recently opened a branch at Dubai Internet City.

Meanwhile, Al Ghurair confirmed OIC was in line to "better" the results in 2000.

"In this industry, one has to wait till the last second before making any specific comment regarding results. There could be sudden surprises, claims or catastrophes.

"While we are keeping our fingers crossed, the performance so far this year has been good. As regards the overall sector in the UAE, one has to wait until the year-end accounts are closed."

On process improvements undertaken within OIC during the year, Al Ghurair said: "We have done a lot in improving efficiencies and lowering costs. There is still a lot at ways of improving these further.

"One way could be how to enhance the working of the IT department and get more benefits for the entire organisation. Raising more efficiencies is, and will be, an ongoing process."

Since the start of the year, OIC has also been streamlining its portfolio, in terms of clients covered, degree of exposure to certain lines, and rationalising its premium rates.

Al Ghurair said: "It is not our policy to compete on rates - there will always be somebody who will offer a lower rate. "Success will be based on the quality of the services you can offer, and whether you can keep the promises made to the clients. This is the only differential in the industry."

OIC has now been certified with the ISO 9001 - 2000 for underwriting services and associated claims in general, life and health insurance. It was in 1999 the company had initiated a "re-engineering" of its business processes.

The certification was done by Lloyd's Register.