HDI Global’s Willem van Wyk on transforming risk management

In an era of rapid urbanisation and shifting economic paradigms, the insurance sector stands as a vital pillar for growth in the UAE and the broader GCC region. Willem van Wyk, managing director of HDI Global’s Dubai office, shares insights on how the company is navigating evolving market demands, the unique challenges of underwriting in a dynamic environment, and its commitment to sustainability and local talent development.

As HDI Global positions itself as a key player in engineering, construction, and renewable energy insurance, van Wyk discusses the critical role of innovation and tailored solutions in enhancing resilience across industries.

How do you see the insurance sector contributing to the growth of the UAE and the broader GCC region? Which sectors in the UAE and GCC do you see as the primary drivers for insurance demand, and how is HDI Global positioning itself to meet this demand?

Insurance has a critical role to play in supporting the fast development of the Middle East region. It certainly supports investors in helping mitigate risk and making new projects bankable, ultimately attracting quality investments. As was seen during the recent flood event in the Middle East, several companies would have faced severe financial stress if it was not for the insurance companies supporting them in managing and transferring risk.

We see ourselves as a reliable and financially strong partner for the industries. There is also a significant increase in investments in the GCC supporting green energy initiatives. These investors, often in new technologies, need to find ways to manage and mitigate risks to make projects financially viable.

Engineering, construction, and property insurance are crucial for supporting the UAE’s industrial sector. What role do these insurance lines play in fostering continued development in this region?

Insurers play a pivotal role in supporting banks and investors and providing them with the confidence to invest in new projects and new technologies. For example, by taking engineering, construction and property risks onto HDI Global’s balance sheet, we make companies more resilient in these times of transformation and free up time and resources for real innovation in their core businesses.

What unique risks and challenges does HDI Global face in underwriting projects in these sectors given the UAE’s focus on rapid urbanisation and infrastructure growth?

Climate change does make weather patterns more difficult to model and that is creating a challenging environment to rate risks accurately around the world. The GCC region is not a natural catastrophe area, but weather patterns are changing so it is important to be ready for that.

We help our clients for example with our climate risk reporting to know the risks before the catastrophe occurs and at best to mitigate them.

The energy sector is transforming with an emphasis on renewable energy and sustainability. How is the firm adapting its products and services to address the challenges posed by this shift? What specific risks or opportunities do you foresee for insurers in the renewable energy space in the GCC?

The rapid transformation to lower carbon energy sources, especially if new technologies are involved, can be problematic to understand and model to help insurers make informed and confident decisions. It is therefore crucial for leading insurers to rely on broad in-house expertise.

Our Risk Consulting unit has developed special services on climate risks to stay on top of future developments for our clients.

We are active in more than 175 countries. So, there is a lot of expertise and knowledge exchange in our house that we can use for the benefit of clients.

What trends are you observing in the Middle East’s insurance landscape, especially in sectors like aviation, logistics, and health? How is HDI Global aligning with these trends?

When it comes to pricing trends, we always seek tailor-made individual solutions for our clients. This is extremely important in industrial insurance as every business is different. Our focus will initially be on the provision of property, construction and engineering insurance solutions, as we see the greatest demand for insurance solutions in these lines of business. But of course, we also look into aviation, logistics and health.

In health, for example, HDI Global has a strong offering in product liability insurance, which includes insurance solutions for clinical trials globally in particular, which are implemented following local requirements.

In a rapidly evolving region like the Middle East, how important is innovation in risk management, particularly for sectors like construction and energy?

Innovations in risk management are equally important in the Middle East like everywhere else in the world, as most industries are undergoing huge transformations at the moment. No matter if it is the transformation to a carbon-free world, increased digitalisation, autonomous vehicles or the energy transition as well as the need for climate risk prevention in general, companies are facing huge challenges which are often accompanied by new risks. In these transformations, risk management already on our clients’ side plays a vital role. We can support companies here as a partner in transformation according to our vision.

With the expertise of HDI Risk Consulting, which consists of more than 200 engineers and risk specialists who are always at the forefront of technological transfer and thus understand these new risks of our clients, we are able to constructively advise and support them on their transformation path.

Elaborate on HDI Global’s short- and long-term plans in the UAE and GCC. Are there any upcoming initiatives, partnerships, or products you’re particularly excited about?

The office in the DIFC only started to operate late in July with a focus on property, construction and engineering. We have already seen great interest in our solutions which fuels our motivation going forward. HDI Global is committed to supporting the UAE and Dubai’s vision. As the business grows, additional lines of cover will be offered as part of the portfolio in Dubai.

Sustainability is increasingly important across various sectors. Do you foresee a greater demand for ESG-focused insurance products in the region as companies in the GCC aim to align with global sustainability standards?

Compliance with ESG requirements and sustainability standards is becoming more and more important for the industry because many of its facets are becoming legal requirements. So, there is a demand from clients for support in this matter. We offer such a service for example with climate risk reporting, but also combine our expertise in energy-related risks in an energy unit which works cross-divisional to offer clients with energy-related risks a one-stop-shop.

How is HDI Global cultivating local talent and expertise in the UAE? Do you have any initiatives focused on developing skills and expertise within the local insurance industry?

We will play our part to be thought leaders in the region and to be true partners in transformation. We need a balanced team, where we bring together the local and global expertise, to support the various sectors and markets in the region to have a reputation as a thought leader who has strong personal relationships helping to add the most value to clients and brokers in their risk transfer requirements