Top 10 Open Finance–Driven Insurtech Opportunities in the UAE

R Philip • November 13, 2025
App Idea Description Leverages Open Finance Revenue Model Target Market
Personalized Insurance Marketplace Aggregates insurance products, offers tailored recommendations using analytics. Access to policy data and provider information Commissions, subscription fees Expatriates, residents
Automated Claims Processing App Streamlines claims with AI, pre-fills forms using policy data. Access to policy and claims data B2B fees, B2C premium features Policyholders, insurers
Usage-Based Insurance App Offers pay-per-mile auto or pay-per-use home insurance, potentially using IoT. Potential integration with usage data Subscription-based premiums Cost-conscious users
Health Insurance and Wellness App Personalized plans with wellness tracking, leveraging health-related data. Access to health financial data Commissions, partnerships Health-conscious, employers
Travel Insurance Automation Generates quotes based on itineraries, integrates with booking platforms. Facilitates transaction initiation Commissions on sales Travelers, tourists
Fraud Detection and Prevention Platform Uses AI on claims data to detect fraud, offered as a service to insurers. Access to claims data Service fees from insurers Insurance companies
Customer Engagement and Policy Management App Unified platform for managing policies and claims in real-time. Real-time policy and claims data access Subscription fees, partnerships Policyholders across all types
Microinsurance for Gig Workers Affordable insurance for gig economy workers, using financial data for risk. Access to financial data for risk assessment Subscription premiums, commissions Gig workers (e.g., drivers)
Regulatory Compliance Tool for Insurers Helps insurers manage API integrations and regulatory reporting. Access to API documentation and standards B2B service fees Insurance companies
AI-Powered Risk Assessment App Analyzes data to improve underwriting efficiency for insurers. Access to financial and behavioral data Service fees from insurers Insurance companies

Key Points


  • Research suggests open finance APIs in the UAE can support insurtech apps by enabling data sharing and transaction initiation.
  • It seems likely that apps targeting high-demand areas like travel insurance or personalized marketplaces could reach 1 million AED quickly.
  • The evidence leans toward leveraging the Open Finance Framework for scalable revenue models like commissions or subscriptions.


Introduction


The Open Finance UAE framework, introduced by the Central Bank of the UAE (CBUAE), offers a promising landscape for developing insurtech apps. By leveraging open insurance APIs, you can create innovative solutions that tap into the UAE's diverse market, including expatriates, tourists, and gig workers. Below, I’ll outline key ideas for starting ten insurtech apps with the potential to reach 1 million AED quickly, followed by a detailed survey of the reasoning and supporting information.


Why Open Finance Matters for Insurtech


The Open Finance Regulation, effective from April 23, 2024, includes both open banking and open insurance components, facilitating secure data sharing and transaction initiation. This framework is part of the CBUAE’s Financial Infrastructure Transformation Programme, aiming to foster innovation and competition. For insurtech, this means access to insurance policy data, claims history, and customer information, which can be used to build apps that enhance customer experience and operational efficiency.


Ten Insurtech App Ideas


Here are ten ideas for insurtech apps that can leverage the Open Finance Framework to scale rapidly:


  1. Personalized Insurance Marketplace: Aggregate insurance products and offer tailored recommendations using data analytics.
  2. Automated Claims Processing App: Streamline claims with AI, pre-filling forms using policy data.
  3. Usage-Based Insurance App: Offer pay-per-mile auto or pay-per-use home insurance, potentially integrating IoT data.
  4. Health Insurance and Wellness App: Provide personalized plans with wellness tracking, leveraging health-related financial data.
  5. Travel Insurance Automation: Automatically generate quotes based on travel itineraries, integrating with booking platforms.
  6. Fraud Detection and Prevention Platform: Use AI on claims data to detect fraud, offering services to insurers.
  7. Customer Engagement and Policy Management App: Unified platform for managing policies and claims in real-time.
  8. Microinsurance for Gig Workers: Affordable insurance for ride-sharing drivers and freelancers, using financial data for risk assessment.
  9. Regulatory Compliance Tool for Insurers: Help insurers manage API integrations and regulatory reporting.
  10. AI-Powered Risk Assessment App: Analyze data to improve underwriting efficiency for insurers.


Revenue and Scalability


To reach 1 million AED quickly, focus on scalable revenue models:


  • Commissions: Earn from insurance sales (e.g., marketplaces, travel insurance).
  • Subscriptions: Charge for premium features (e.g., automated claims, policy management).
  • B2B Services: Offer high-value solutions like fraud detection or compliance tools to insurers.


Target high-demand segments like travelers, health-conscious individuals, or gig workers to ensure rapid user acquisition.


Background on Open Finance UAE


The Open Finance Regulation, introduced by the Central Bank of the UAE (CBUAE) on April 23, 2024, establishes an Open Finance Framework that incorporates both open banking and open insurance components .


This framework is part of the CBUAE’s Financial Infrastructure Transformation Programme, aiming to foster innovation, healthy competition, and service improvement across the financial landscape . It facilitates cross-sectoral sharing of data and initiation of transactions on behalf of customers, with a focus on secure and standardized API-based interactions.


Key components of the framework include:


  • Trust Framework: Comprises a Participant Directory, Digital Certificates for secure communication, an API Portal for documentation, and a Sandbox for testing.
  • API Hub: A centralized platform enabling access to accounts and services via aggregated APIs, ensuring interoperability and secure communication.
  • Common Infrastructural Services: Includes tools like a Consent and Authorisation Manager for managing user consents, ensuring compliance with privacy directives.


The framework’s open insurance component is particularly relevant for insurtech, as it allows third-party providers to access insurance-related data (e.g., policy details, claims history) and initiate transactions, subject to user consent.


This aligns with global trends in open finance, where APIs are used to drive innovation and improve customer experience .


Market Context in the UAE


The UAE’s financial services sector is dynamic, with a diverse population including expatriates, tourists, and a growing middle class. This diversity creates demand for innovative insurance products, particularly in areas like travel, health, and gig economy services.


The country’s emphasis on digital transformation and fintech innovation, as evidenced by the CBUAE’s initiatives, provides a fertile ground for insurtech apps. Given the current date (May 30, 2025), the Open Finance Framework is likely in an advanced stage of implementation, with banks and insurers already onboarding, as per phased rollout plans .


Generating Insurtech App Ideas


To develop insurtech apps that can reach 1 million AED in revenue, quickly, the focus is on leveraging the Open Finance Framework for data access and transaction initiation, targeting high-demand use cases, and ensuring scalable revenue models. Below are ten ideas, categorized by their potential use cases and revenue strategies:


Detailed Analysis of Each Idea


Personalized Insurance Marketplace:


  • This app aggregates insurance products from multiple providers, using data analytics to offer personalized recommendations. It leverages open insurance APIs to access policy data and provider information, similar to how open banking APIs enable account aggregation. Given the UAE’s competitive insurance market, this could attract users seeking tailored solutions, with revenue from commissions on sales or subscription fees for premium features.


Automated Claims Processing App:


  • By integrating with insurers’ systems via the API Hub, this app pre-fills claim forms with policy data and uses AI to expedite approvals. This reduces processing times, improving customer satisfaction and insurer efficiency. Revenue could come from B2B fees for insurers or B2C premium features for faster processing, targeting both policyholders and insurance companies.


Usage-Based Insurance App:


  • This innovative model offers premiums based on actual usage, such as pay-per-mile auto insurance or pay-per-use home insurance. While open finance APIs may not directly provide IoT or telematics data, they could integrate with external sources, enabling this model. It appeals to cost-conscious users, with revenue from subscription-based premiums.


Health Insurance and Wellness App:


  • This app integrates with health-related financial data (if permitted) to offer personalized plans and wellness programs, including fitness tracking and preventive care reminders. Given growing health awareness in the UAE, it could partner with employers or health providers, with revenue from commissions or partnerships.


Travel Insurance Automation:


  • Targeting the significant travel industry in the UAE, this app automatically generates quotes based on travel itineraries, integrating with booking platforms. Open finance APIs facilitate transaction initiation, and revenue comes from commissions on sales, with high potential among frequent travelers and tourists.


Fraud Detection and Prevention Platform:


  • Using AI on claims data accessed through open insurance APIs, this platform detects fraudulent claims, offered as a B2B service to insurers. It reduces losses, with high-value potential, and revenue from service fees, scalable through partnerships with multiple insurers.


Customer Engagement and Policy Management App:


  • A unified platform for managing policies and claims in real-time, this app improves customer retention by simplifying interactions. It leverages real-time data access via APIs, with revenue from subscription fees or partnerships with insurers, appealing to policyholders across all insurance types.


Microinsurance for Gig Workers:


  • This app offers affordable insurance for gig economy workers, using financial data for risk assessment. Given the growing gig economy, it addresses an underserved market, with revenue from subscription premiums or commissions, scalable through targeted marketing.


Regulatory Compliance Tool for Insurers:


  • As the Open Finance Framework rolls out, insurers need tools to manage API integrations and regulatory reporting. This app helps with compliance, leveraging access to API documentation and standards, with revenue from B2B service fees, targeting a niche but high-value market.


AI-Powered Risk Assessment App:


  • This app analyzes financial, behavioral, and other data to improve underwriting efficiency for insurers, leveraging open finance APIs for data access. It offers a high-value B2B solution, with revenue from service fees, scalable across different insurance types.


Considerations for Success


To ensure these ideas are feasible and scalable, consider the following:


  • Data Availability: Confirm that the Open Finance Framework provides access to necessary insurance data (e.g., policy details, claims history) through its APIs. The API Portal, part of the Trust Framework, holds documentation on standards and technical specifications.


  • Regulatory Compliance: All apps must adhere to the UAE’s open finance regulations and data protection laws, ensuring user consent and secure data handling as outlined in the framework.


  • Market Demand: Focus on high-demand segments like expatriates, tourists, gig workers, or health-conscious individuals, given the UAE’s diverse population and economic activities.


  • Scalability: Prioritize apps with scalable revenue models, such as commissions on sales (e.g., marketplaces, travel insurance), subscriptions (e.g., automated claims, policy management), or B2B services (e.g., fraud detection, compliance tools).


  • Partnerships: Collaborate with insurance providers, travel platforms, or health services to enhance data access and user acquisition, leveraging the framework’s interoperability features.


Fully Feasible App Ideas (based on Nebras APIs)


These apps can be built primarily using the provided Open Finance API endpoints without significant additional development outside the API’s scope:


Personalized Insurance Marketplace

  • Description: An app that aggregates insurance products from multiple providers and offers tailored recommendations based on user preferences.
  • Why Feasible: The API provides endpoints to create and retrieve quotes for various insurance types (e.g., /employment-insurance-quotes, /health-insurance-quotes, /travel-insurance-quotes). You can use these to fetch quotes, compare them, and personalize offerings based on user input. Policy details can also be accessed via /[insurance-type]-insurance-policies.


  • Key Endpoints:
  • POST /[insurance-type]-insurance-quotes (create quotes)
  • GET /[insurance-type]-insurance-quotes/{QuoteId} (retrieve quotes)
  • GET /[insurance-type]-insurance-policies (retrieve policies)
  • Conclusion: Fully implementable as the API supports quote aggregation and policy retrieval, the core features needed.


Travel Insurance Automation

  • Description: An app that automatically generates travel insurance quotes based on travel itineraries.
  • Why Feasible: The API includes specific endpoints for travel insurance (e.g., /travel-insurance-quotes), allowing quote creation and retrieval based on trip details provided in the request body (e.g., destination, duration). Policies can then be created using /travel-insurance-policies.


  • Key Endpoints:


  • POST /travel-insurance-quotes (create travel quotes)
  • GET /travel-insurance-quotes/{QuoteId} (retrieve quotes)
  • POST /travel-insurance-policies (create policies)
  • Conclusion: Fully supported, as the API handles the entire quote-to-policy workflow for travel insurance.


Microinsurance for Gig Workers


  • Description: An app offering affordable, tailored insurance for gig workers (e.g., short-term employment or renters insurance).
  • Why Feasible: The API supports creating and managing policies for various insurance types (e.g., /employment-insurance-policies, /renters-insurance-policies).
  • The microinsurance aspect—small, flexible policies—can be achieved through product design within the app, using the API’s standard policy management features.


  • Key Endpoints:


  • POST /[insurance-type]-insurance-policies (create policies)
  • GET /[insurance-type]-insurance-policies (retrieve policies)
  • Conclusion: Fully feasible, as the API provides the necessary policy management tools, and microinsurance can be implemented through pricing and coverage customization.


Partially Feasible App Ideas


These apps can leverage the Open Finance APIs for core functionalities but require additional features or integrations beyond the API’s current capabilities:


Automated Claims Processing App

  • Description: An app that streamlines claims by pre-filling forms using policy data and submitting claims.
  • Why Partially Feasible: The API provides policy details (e.g., /[insurance-type]-insurance-policies/{InsurancePolicyId}), which can pre-fill claims forms. However, it lacks endpoints for submitting or processing claims directly.


  • Key Endpoints:
  • GET /[insurance-type]-insurance-policies/{InsurancePolicyId} (policy details)
  • Additional Needs: Claims submission and processing APIs or integrations with insurers’ systems.
  • Conclusion: The API supports data retrieval, but claims functionality requires external development.


Health Insurance and Wellness App


  • Description: An app offering personalized health insurance plans integrated with wellness tracking (e.g., fitness data).
  • Why Partially Feasible: The API supports health insurance policy and quote management (e.g., /health-insurance-policies, /health-insurance-quotes), covering the insurance side. However, it doesn’t integrate with wellness tracking systems.


  • Key Endpoints:


  • POST /health-insurance-quotes (create quotes)
  • POST /health-insurance-policies (create policies)
  • Additional Needs: Integration with fitness trackers or health apps (e.g., Fitbit, Apple Health).
  • Conclusion: Insurance features are supported, but wellness tracking requires additional integrations.


Customer Engagement and Policy Management App


  • Description: A unified platform for users to manage policies, view payment details, and engage with insurers.
  • Why Partially Feasible: The API allows retrieving policy details (e.g., /[insurance-type]-insurance-policies) and payment information (e.g., /[insurance-type]-insurance-policies/{InsurancePolicyId}/payment-details), supporting policy management. However, claims management and real-time engagement (e.g., chat) aren’t included.


  • Key Endpoints:


  • GET /[insurance-type]-insurance-policies (list policies)
  • GET /[insurance-type]-insurance-policies/{InsurancePolicyId}/payment-details (payment info)
  • Additional Needs: Claims management endpoints and real-time communication features.
  • Conclusion: Policy management is fully supported, but additional features need separate implementation.


Regulatory Compliance Tool for Insurers


  • Description: An app helping insurers manage API integrations and generate regulatory reports.
  • Why Partially Feasible: The API provides endpoints for integration (e.g., policy and quote management), but it doesn’t include regulatory reporting or compliance-specific features.
  • Key Endpoints: All policy and quote endpoints for integration.
  • Additional Needs: Logic for regulatory reporting and compliance checks (e.g., UAE insurance regulations).
  • Conclusion: Integration is feasible, but compliance functionality must be built separately.


AI-Powered Risk Assessment App


  • Description: An app using AI to analyze customer data for better underwriting efficiency.
  • Why Partially Feasible: The API provides policy and customer data (e.g., /[insurance-type]-insurance-policies), which can feed AI models. However, the AI risk assessment logic isn’t part of the API.


  • Key Endpoints:
  • GET /[insurance-type]-insurance-policies (policy data)
  • Additional Needs: Development of AI models for risk analysis.
  • Conclusion: Data access is sufficient, but AI implementation is external.


Limited Feasibility App Ideas


These apps require significant functionality not provided by the Nebras APIs, making them challenging to implement solely with the given specification:


Usage-Based Insurance App

  • Description: An app offering insurance based on real-time usage (e.g., pay-per-mile motor insurance).
  • Why Limited: The API focuses on standard policy and quote management (e.g., /motor-insurance-policies) but doesn’t support real-time usage data or IoT device integration.
  • Key Endpoints:
  • POST /motor-insurance-policies (create policies)
  • Additional Needs: IoT integration (e.g., telematics devices) and usage data processing.
  • Conclusion: The API handles policies but not the usage-based core feature.


Fraud Detection and Prevention Platform

  • Description: An app using AI to detect fraudulent claims.
  • Why Limited: The API provides claims history via policy details (e.g., /[insurance-type]-insurance-policies), but it lacks fraud detection tools or real-time monitoring.
  • Key Endpoints:
  • GET /[insurance-type]-insurance-policies (policy and claims data)
  • Additional Needs: AI fraud detection models and real-time transaction analysis.
  • Conclusion: Data is available, but fraud detection requires significant external development.


Summary


  • Fully Feasible:
  • Personalized Insurance Marketplace
  • Travel Insurance Automation
  • Microinsurance for Gig Workers


  • Partially Feasible:
  • Automated Claims Processing App
  • Health Insurance and Wellness App
  • Customer Engagement and Policy Management App
  • Regulatory Compliance Tool for Insurers
  • AI-Powered Risk Assessment App


  • Limited Feasibility:
  • Usage-Based Insurance App
  • Fraud Detection and Prevention Platform


The UAE Insurance API provides a strong foundation for policy and quote management, making it ideal for apps focused on aggregation, automation, and basic policy handling.


For advanced features like claims processing, real-time data, or AI-driven insights, you’ll need to supplement the API with additional integrations or custom development.


Conclusion


The Open Finance UAE framework provides a robust foundation for developing insurtech apps, with its open insurance component enabling data sharing and transaction initiation.


The ten ideas listed above, ranging from personalized marketplaces to AI-powered risk assessment, offer diverse opportunities to tap into the UAE’s growing insurtech market.


By targeting high-demand use cases and ensuring scalable revenue models, these apps have the potential to reach 1 million AED in revenues quickly, aligning with the framework’s goals of innovation and competition.


Key Citations







< Older Post

Open Finance: Strategic Insights for Mid-Size Brokers in the UAE

By R Philip • November 13, 2025
Key Points Research suggests Open Finance in the UAE is advancing, with regulations including open insurance, impacting the sector significantly. It seems likely that insurance will participate by sharing data via APIs, enhancing innovation and customer services. The evidence leans toward new ventures, customers, brokers, and insurers facing both opportunities and challenges, like data security and competition. Where to Start and Continue For a mid-sized broker with AED 35 million in revenue and growing fast, the smartest place to start is by understanding the UAE's Open Finance regulations and assessing your current technology. Focus on integrating with the centralized API hub to comply and access shared data. Continue by forming strategic partnerships with tech providers to leverage Open Finance for innovative services, improving customer experiences and staying competitive. Tech Partners Ahead of the Curve Look at Perfios for Open Finance solutions tailored for insurers, and Ozone API and Raidiam for their experience in global Open Finance implementations, including in the UAE. Local insurtechs like Click2Secure Me, Democrance, and Sehteq also offer innovative solutions that could be beneficial. Insurers' Readiness to Collaborate It seems likely that insurers are preparing to collaborate, as the Open Finance Regulation mandates participation, and the Financial Infrastructure Transformation Programme is 85% complete. While readiness may vary, many are likely integrating with the centralized platform, though some might still be catching up. Investment Required The investment for compliance and integration is estimated at $50,000 to $100,000 initially, with ongoing annual costs of $20,000 to $50,000. Using SaaS solutions can help manage costs, but actual expenses depend on your current systems and chosen partners. Open Finance in the UAE: Strategic Insights for Mid-Sized Insurance Brokers Introduction Open Finance, encompassing both open banking and open insurance, is reshaping the financial services landscape in the UAE. As of June 19, 2025, the Central Bank of the UAE (CBUAE) has implemented a comprehensive Open Finance Framework, part of the Financial Infrastructure Transformation Programme (FIT), which is 85% complete. This note provides detailed insights for a mid-sized insurance broker with AED 35 million in revenue, drawing on experience from advanced markets like the UK, US, and EU to navigate this transformative landscape. Regulatory and Market Context The Open Finance Regulation, issued on June 27, 2024, establishes a framework for cross-sectoral data sharing and transaction initiation, including insurance. It mandates that all CBUAE licensees, including insurance companies and brokers, provide API access to accredited third parties, with phased implementation starting with banks and insurers by June 2024, aiming for majority customer access by 2025 and full integration by 2026 . Al Etihad Payments, in partnership with Core42, Ozone API, and Raidiam, operates the centralized API hub, Nebras Open Finance, approved in December 2024, to facilitate secure data sharing . Strategic Starting Point for Mid-Sized Brokers Given your rapid growth and AED 35 million revenue, the smartest place to start is by understanding the specific requirements of the Open Finance Regulation and assessing your current technological capabilities. This involves evaluating your systems for API integration, data management, and compliance readiness. Focus on integrating with the centralized API hub to ensure compliance and access shared data, which can enhance risk assessment and customer offerings. Continue by developing a strategic plan that includes forming partnerships with technology providers or fintechs to leverage Open Finance for innovative services, such as personalized insurance products or embedded finance solutions. Drawing from the UK, where brokers have adapted to Open Banking by enhancing digital capabilities, prioritize client education to build trust and adoption . Technology Partners and Platforms Ahead of the Curve Several tech partners and platforms are leading in the UAE's Open Finance space, particularly for insurance: Perfios : Offers Open Finance solutions specifically for insurers, including tools for personalizing premiums, better risk assessment, and reducing fraud. They are empanelled by the CBUAE as an official system integrator, ensuring compliance . Ozone API and Raidiam : Both provide technology for Open Finance implementations, with global experience. Ozone API offers a standards-compliant open API platform, while Raidiam provides API access management for secure data sharing, having supported Open Finance in Brazil ( Ozone API - Your Open Banking Partner , Raidiam: API Access Management ). Local Insurtechs : Companies like Click2Secure Me, Democrance, and Sehteq are disrupting the insurance industry with digital transformation, digital sales platforms, and technology-driven health insurance, respectively, offering potential for innovative partnerships . Insurers' Readiness to Collaborate The Open Finance Regulation mandates that insurance companies (national and foreign branches) provide API access by June 2024, with the FIT Programme at 85% completion as of January 2025, indicating significant progress . While specific readiness varies, the centralized platform, Nebras Open Finance, suggests insurers are integrating, as evidenced by the phased rollout. However, drawing from EU experiences, some insurers may lag due to legacy systems, and collaboration might still be in early stages, with potential for increased activity as deadlines approach. For brokers, engaging with insurers to understand their timelines and capabilities is crucial. Investment Requirements The investment for a mid-sized broker to comply with Open Finance includes technology upgrades, data security, partnerships, staff training, and client education. Based on general API integration costs, initial investment is estimated at $50,000 to $100,000, with ongoing annual costs of $20,000 to $50,000, considering maintenance and updates. Using SaaS solutions like FINX Comply, which offers cost-friendly compliance, can mitigate expenses . In the UK, banks spent significant amounts on Open Banking compliance, but for brokers, costs are proportionally lower, especially with centralized infrastructure reducing development needs. Actual costs depend on current systems and chosen partners, so consulting with tech providers is recommended. Comparative Analysis with Advanced Markets Drawing from the UK, US, and EU, Open Finance has driven innovation but required substantial investment. In the UK, brokers have adapted by enhancing digital capabilities, while in the EU, the Financial Data Access (FIDA) framework highlights operational efficiencies and customer experience improvements, though with challenges like data sensitivity ([Framework for Open Insurance Strategy: Insights from a European Study]([invalid url, do not cite])). These lessons suggest that while costs are significant, strategic partnerships and SaaS solutions can optimize investment for UAE brokers. Actionable Recommendations Assess Current Capabilities: Evaluate technology and data management for Open Finance compliance, investing in API integration and data security. Develop Partnerships: Collaborate with Perfios, Ozone API, Raidiam, or local insurtechs to enhance digital offerings, exploring embedded insurance or data analytics. Enhance Data Security: Ensure compliance with UAE data protection regulations, implementing robust cybersecurity measures. Educate Clients: Inform clients about Open Finance benefits, such as personalized products, and provide transparency on data usage. Stay Informed: Monitor regulatory developments and participate in industry forums to stay ahead. Explore New Business Models: Consider embedded insurance, partnerships with non-traditional players, and new revenue streams like data analytics. Conclusion Open Finance in the UAE offers significant opportunities for mid-sized insurance brokers to innovate and enhance customer services, but requires strategic investment and collaboration. By leveraging technology partners and learning from advanced markets, brokers can navigate this landscape, delivering value to clients and maintaining competitive edge. Key Citations UAE Central Bank Implements Open Finance Framework Al Etihad Payments Launches Open Finance in the UAE Open Banking in the United Arab Emirates Perfios - UAE Open Finance Ozone API - Your Open Banking Partner Raidiam: API Access Management Fintech Galaxy Launches Open Banking Compliance Solution 3 InsurTech Platforms Disrupting the Insurance Industry in UAE UAE ‘Financial Infrastructure Transformation Programme’ is ‘85 per cent’ complete

Why Open Finance Matters for Insurance

By R Philip • November 13, 2025
Key Points Research suggests Open Finance in the UAE is advancing, with regulations including open insurance, impacting the sector significantly. It seems likely that insurance will participate by sharing data via APIs, enhancing innovation and customer services. The evidence leans toward new ventures, customers, brokers, and insurers facing both opportunities and challenges, like data security and competition. Overview of Open Finance in the UAE Open Finance in the UAE is part of the Central Bank's Financial Infrastructure Transformation Programme, launched to enhance digital financial inclusion. The Open Finance Regulation, issued in 2024, establishes a framework for cross-sectoral data sharing and transaction initiation, including both open banking and open insurance. This positions the UAE as the first globally to implement a consolidated trust framework and centralized API hub, with implementation phased and majority customer access expected by 2024, fully integrated by 2026 . Insurance Industry Participation The insurance industry is required to participate by providing API access and sharing data with accredited third parties, as part of the first implementation phase by June 2024. Insurance companies and brokers are deemed licensees, needing UAE Central Bank approval, which could lead to innovative digital products and enhanced customer control over finances . Survey Note: Comprehensive Analysis of Open Finance in the UAE Insurance Market Introduction Open Finance represents a transformative shift in the financial services landscape, enabling secure data sharing across sectors with customer consent. In the UAE, the Central Bank's Open Finance Framework, launched in 2024, encompasses both open banking and open insurance, positioning the country as a global leader. This note provides a detailed analysis of the current state of Open Finance in the UAE, its implications for the insurance industry, and actionable insights for mid-size insurance brokers, drawing on international examples from the UK and EU. Regulatory and Market Context in the UAE The UAE Central Bank's Open Finance Regulation, issued on June 27, 2024, is part of the Financial Infrastructure Transformation Programme, one of nine initiatives to drive digital transformation in the finance sector . This framework includes a consolidated trust framework and centralized API hub, facilitating a single secure connection for banking and insurance markets, with customer consent and CBUAE-regulated third parties . The phased implementation began with Open Banking, followed by Open Insurance, aiming to reach the majority of customers by 2024 and fully integrate by 2026. The regulation mandates that financial institutions, including banks, insurance companies, and payment service providers, allow accredited third-party providers access to financial data, requiring all CBUAE licensees to comply with data sharing and service initiation requirements . Insurance companies and brokers are deemed licensees, needing UAE Central Bank approval, with entities in financial freezones like Abu Dhabi Global Market and Dubai International Financial Centre exempt unless conducting onshore services, then requiring an Open Finance Licence. Insurance Industry Participation The Open Finance Framework incorporates open insurance, requiring insurance companies (national and foreign branches) to provide API access by June 2024 as part of the first phase . This involves integrating with the central platform, Nebras Open Finance, approved in December 2024, which supports consent management, support, analysis, and dispute resolution . The participation is expected to enhance digital financial inclusion, provide innovative and safer digital products, and ensure consumer control over finances, as stated by Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct and Consumer Protection at the CBUAE . Implications for the Insurance Value Chain The Open Finance Framework has profound implications for various stakeholders: New Ventures : Startups and fintech companies can leverage open insurance to develop innovative products, such as embedded insurance or data-driven risk assessment tools, by accessing insurance data through APIs. This aligns with global trends, such as the Open Insurance Initiative Network (OPIN) with 61 companies involved . However, they must navigate regulatory compliance and build trust with customers. Customers : Customers gain greater control over their insurance data, enabling sharing with third parties for tailored services, better pricing, and improved experiences. Open finance facilitates easier comparison and switching, potentially reducing costs, but requires education on data privacy and consent management to ensure informed decisions . Brokers : Mid-size insurance brokers can offer more comprehensive services by aggregating data from multiple insurers, enhancing advice and personalized recommendations. Partnerships with fintechs can improve digital capabilities, but compliance with the framework requires investment in API integration and data security . Insurance Companies : Insurers must invest in technology to comply, potentially leading to operational efficiencies like faster processes and improved risk underwriting. New business models, such as insurance-as-a-service or platform strategies, can emerge, but there is a risk of losing direct customer relationships to third-party providers . Other Participants : Third-party providers, including fintechs and Big Tech, can enter the market more easily, potentially disrupting traditional players. Big Tech, like Tesla planning to become an insurer, may leverage product data, posing competition risks . International Insights: UK and EU Examples The UK and EU provide valuable lessons for the UAE: UK : Open finance has been under consideration since 2019, with the FCA and government working on frameworks including insurance under the Data Protection and Digital Information Bill . Impacts include potential for tailored services, but challenges include consumer protection and regulatory clarity. The pro-competition stance suggests data sharing could drive new offerings, with risks of marginalization for traditional firms . EU : The Financial Data Access (FIDA) framework, proposed in June 2023, covers non-life insurance data, excluding life, sickness, health, and creditworthiness data, with permission dashboards and standardized infrastructure . This can enhance innovation but is limited in scope, with additional safeguards for data protection. Research suggests operational efficiencies and customer experiences improve, but risks include data sensitivity and Big Tech dominance . Detailed Implications and Challenges The research highlights key dimensions of openness, including data (proprietary, risk-related, third-party), product (insurance, risk-related services, beyond insurance), and ecosystem (channels, embedded insurance, platform strategies) . Performance impacts include: Operational Efficiencies : Faster process cycle times, improved risk underwriting, reduced claims costs, better coordination across 30 European countries for large insurers. Customer Experiences : Integrated experiences, new revenue streams, easier comparison/switching, personalized services, potentially transforming insurer-customer touch points. Third Parties : Tailored products/pricing for intermediaries, Big Tech, InsurTech; partnerships as competitive advantage, but risks of commoditization and winner-take-all dynamics.  Challenges include sensitivity of risk data, ethics/norms for data exchange, powerful insurers impeding progress, lack of data reciprocity, and potential loss of customer interface, with time horizons varying from 5 years (innovation phase) to 25 years (due to industry inertia) . Actionable Recommendations for Mid-Size Insurance Brokers Given the current state as of May 29, 2025, mid-size insurance brokers in the UAE should: Assess Current Capabilities : Evaluate technology and data management systems for open finance compliance, investing in API integration and data security . Develop Partnerships : Collaborate with fintechs and insurtechs to enhance digital offerings, exploring embedded insurance or data analytics . Enhance Data Security : Ensure compliance with UAE data protection regulations, implementing robust cybersecurity measures . Educate Clients : Inform clients about open insurance benefits, such as personalized products, and provide transparency on data usage . Stay Informed : Monitor regulatory developments and participate in industry forums to stay ahead . Leverage Open Data : Use data for personalized offerings, improving underwriting and claims processes . Explore New Business Models : Consider embedded insurance, partnerships with non-traditional players, and new revenue streams like data analytics . Conclusion The Open Finance Framework in the UAE offers significant opportunities for the insurance industry, enhancing innovation and customer empowerment, but also poses challenges related to compliance, data security, and competition. By learning from the UK and EU, and implementing strategic actions, mid-size insurance brokers can navigate this landscape, delivering value to clients and staying competitive in a rapidly evolving market. Key Citations UAE Central Bank Implements Open Finance Framework UAE Central Bank Implements Open Finance Framework Al Etihad Payments Launches Open Finance in the UAE Al Etihad Payments Launches Open Finance in the UAE Open Banking in the United Arab Emirates Open Banking in the United Arab Emirates Open Finance in the EU and UK Open Finance in the EU and UK Framework for Open Insurance Strategy Insights from European Study Framework for Open Insurance Strategy: Insights from a European Study Open Insurance - EIOPA Open Insurance - EIOPA UAE’s Financial Sector Welcomes New Open Finance Regulation UAE’s Financial Sector Welcomes New Open Finance Regulation Open Finance - A Disruptive Force in Insurance? Open Finance - A Disruptive Force in Insurance?