Over the past few years, the insurance industry continued to evolve and meet the demands of a rapidly changing operating environment impacted by a range of factors; from a global pandemic and expedited digital advancement, to ESG trends and transformative economic and social reform. Change was abundant, and as a result, new risks were emerging. Tawuniya, as the insurance pioneer of the Kingdom of Saudi Arabia, grew and evolved to identify these risks, and explore the new opportunities they presented; opportunities that would benefit both the Company and its stakeholders mutually.
Driven by its overarching purpose to empower people to live safer, plan bolder and dream bigger, Tawuniya meticulously planned, set goals, determined roles and responsibilities, and implemented Strategy 2025 during the 2021 fiscal year, targeting and committing to six key strategic objectives:
1 Lead the prevention, wellness and care agenda of Saudi Arabia
Today, healthcare is focused on treatment and some societal needs are not properly addressed. Tawuniya will enable a personalized approach to care, protection, and prevention for its clients and the society by integrating vertically and digitally across the health value chain and introducing new supplementary health insurance products focusing on promoting and rewarding healthy lifestyles across the society while providing seamless and adequate care when needed.
2 Be the integrated value add & innovative insurer for individual mobility
Tawuniya is transforming into a lifestyle partner covering the entire client journey of owning a vehicle with the ultimate goal of promoting safe driving and enriching its Customer Value Proposition (CVP). The Company is reshaping its clients’ mobility experience through innovative solutions, allowing a personalized approach in offering seamless end-to-end services from buying, to using, to servicing, to selling their automobiles.
3 Protect and de-risk the growth of the Saudi economy
Tawuniya is introducing new and innovative products and services to cover and protect customers from new risks emerging as a result from Saudi Arabia’s growing economy and transforming society, supporting emerging businesses/industries and contributing to the sustainable growth of the Saudi economy and society.
4 Pioneer financial independence for a better future
The Company aims to become the trusted partner to support individuals along their life journey, and pioneer financial independence and security within the Saudi society. Tawuniya will extend protection (e.g. term-life, disability and credit life insurance) and savings (e.g. endowment, annuity/pensions…) insurance solutions to underserved segments, giving them the financial stability and confidence to pursue their dreams.
5 Be the digital-first partner of choice for priority segments across all their risks
Tawuniya will cater to millennials, start-ups, and the digitally-savvy population by introducing insurtech solutions to provide customized insurance products with end-to-end digital journeys.
Beyond these five key objectives, Strategy 2025 is unified by Tawuniya’s overarching goal—to be an advocate and example for positive change within the insurance industry, and to contribute to the financial, social, and environmental success of the Kingdom of Saudi Arabia in line with Vision 2030. Tawuniya’s management is aligned in their commitment to this mission, and have outlined four guiding promises to stakeholders.
Tawuniya’s promise is to listen to its clients and stakeholders with the goal of understanding their evolving needs. Tawuniya also promises to meet these needs through constant innovation and by offering affordable, accessible, high-quality solutions ranging from prevention to protection. The Company will provide digital first solutions to clients across the entirety of their journeys, inclusive of access to a full ecosystem of digital services, fully embracing and endorsing the digital revolution across the Saudi Arabian insurance industry.
The Company also promises to strengthen its relationship with its employees, nurturing a culture of collaboration, accountability, recognition and most importantly the support and encouragement that allows for personal development, innovative ideas, and visionary leadership.
In 2022, Tawuniya successfully met target objectives and recorded a number of major achievements in its Strategy 2025 realization journey:
- As part of building a Mobility ecosystem, Tawuniya launched “Tawuniya Drive” to promote and reward safe driving as part of our mobility ecosystem build-up. More than 50K clients joined the program so far and are enjoying safe driving rewards while Tawuniya is witnessing higher retention ratios with lower loss ratios.
- Implemented Artificial Intelligence (AI) models in its Mobility underwriting practice, allowing the Company to provide the right price and right products to the market, increasing channel penetration and attracting more clients. The success of these initiatives were clearly reflected in Tawuniya’s growth witnessed in its mobility line of business.
- Capitalized on Tawuniya’s exclusive wellness program, Tawuniya Vitality. The program helps users understand their health status, and works together to elevate it and adopt a healthier, more active, and rewarding lifestyle. This program received the “Best Health Initiative” from the Council of Health Insurance (CHI).
- Adopted sophisticated machine-learning technologies to enhance health claims fraud controls. This initiative supports minimizing healthcare inflation rates while ensuring adequate treatment to all clients.
- Covered new emerging risks by designing and launching a multitude of General innovative products such as:
- Cyber Security for Individuals: The digital advancement witnessed locally and globally gave rise to cyber risks in the market and Tawuniya responded by introducing a tailor-made insurance product to cover individuals from such risks.
- Travel COVID: Tawuniya introduced this product at a national scale to protect travelers during the pandemic.
- Home Insurance: The KSA Government’s direction to promote home ownership of the Saudi population created new demand for home coverage. Tawuniya addressed this demand by introducing customizable Home Insurance products.
- Successfully launched the first insurtech company in the market – the Tree Digital Insurance Company. Tree is providing a new digital experience in insurance while increasing insurance penetration and accessibility in the market.
- Invested in expanding distribution channels and offerings through new partnerships across the insurance value chain for all lines of business (e.g. bancassurance with multiple banks for leasing accounts, embedded insurance, etc.)
- Evaluated its position in ESG and committed to a set of goals for 2023 and beyond aligned with the Kingdom’s Vision and global attention.
- Revamped the operating model to complement Tawuniya’s new purpose and strategy by implementing multiple initiatives related to organizational structure, corporate values, brand uplift, and customer experience.
- Strengthened our balance position, Regained our “A-” credit rating with S&P demonstrating the solidity and sustainability of the Company in the market.
Tawuniya takes great pride in both its financial and non-financial achievements during the reporting period, and looks forward to continuing on its ambitious journey of realizing Strategy 2025, and its goals for 2023.
