(MENAFN- Khaleej Times)
Published: Tue 27 Sep 2022, 1:32 PM
Last updated: Tue 27 Sep 2022, 3:48 PM
The first UAE blockchain digital platform which enables insurers to reconcile motor recovery claims between each other and improve their financial position has been rolled out in Abu Dhabi, putting an end to a decades-old industry challenge.
XA Group, a global provider of Digital, Hardware and Manpower solutions in the automotive aftersales industry on Tuesday announced the launch of Addenda, the first 'Made in the UAE', Blockchain-based, end-to-end digital solution.
Leading UAE insurers including Abu Dhabi National Insurance Company, Emirates Insurance Company, Yas Takaful, and Oriental Insurance Company have been among the first to adopt the digital solution in the UAE, highlighting the sector's appetite for transparency and digitalisation.
Photos by Ismail
During the launch event held in Abu Dhabi under the patronage and presence of Abu Dhabi National Insurance Company, Emirates Insurance Company, Yas Takaful, and Oriental Insurance Company, XA Group announced that it is granting all MENA motor insurers open access to Addenda for the first six months in a bid to improve their financial position and help them overcome the challenge of motor recovery receivables. The insurers in attendance were among the first to adopt the digital solution and gain hands-on experience using it.
Originally a blockchain technology start-up and a DIFC FinTech Hive member, Addenda is capitalizing on XA Group's advanced automotive repair and insurance solutions to facilitate, centralize and manage all communications between insurers during the recovery process of motor claims.
XA Group's vision is to further develop and enhance Addenda by integrating existing products into the platform and enabling seamless communications. Addenda aims to manage all the key touchpoints in the motor claims eco-system, bringing together insurers, brokers, repairers and customers.
XA Group, a UAE-based global provider of automotive aftermarket services operating in the Middle East, India and Europe, has also included an Arabic version of Addenda to support those regional insurers whose business language is primarily Arabic.
Addenda offers a live and shared view of policy data and documentation among insurers, providing visibility into the extensive approval and reconciliation process that takes place during motor recovery claims.
“We understand the challenges insurers face and the major financial burden posed on them due to the heavily decentralised and paper-based nature of the reconciliation process. Decentralisation often means insurance companies are unable to fully identify the reasons behind outstanding claims and therefore, they are not able to reconcile their financials with other insurers,” Mina Sahib, Insurance Business Director for MENA at XA Group, said during the press conference.
She added:“Seeing some of the leading insurers in the UAE onboard is testament to the sector's appetite for transparency and digitalisation. Using Addenda, those early adopters are set to strengthen their position in the marketplace as we plan to develop the platform further by adding new features and enhancements.”
Sahib explained that Addenda is a communication platform that allows the centralisation of communication and document between all insurance firms on the motor claim recoveries. When an insurance firm needs to recover funds from another company during third-party claims, it allows for all that communication to take place digitally.
“Today, insurance firms use couriers, emails and phones to send paperwork and communication. There is no way to actually centralise it. As a result, we are seeing a major challenge in the market in terms of being able to reclaim the funds,” she told Khaleej Times at the press conference.
Paul McLeod, Chief Operating Officer at Emirates Insurance, said:“The digital platform provides transparency between insurers when one of their customers has got a claim that has been piled by another insurer. The platform facilitates paperless exchange of value payment in a very seamless, efficient and cost-effective manner.
“Exchanging recovery payments is a very big challenge to the industry. I think this is a small step for some of the leading firms in the industry to come together and start working as a group in a collaborative way.”
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.