Shaheen Iqbal Reveals How The Insurance Industry Works
Shaheen Iqbal, ex-CFO at Marsh McLennan, explores the evolving CFO role, insurance challenges, and AI’s impact on finance in the Middle East.
In a recent episode of The Dollar Diaries, Shaheen Iqbal, Global Head of Financial Planning & Analysis at VEON and former CFO for UAE and Saudi Arabia at Marsh McLennan, shared her wealth of knowledge and experience in the insurance sector, corporate finance, and the transformative role of technology in today's business landscape. This in-depth conversation revealed the multifaceted nature of the insurance industry, the evolving role of CFOs, and the strategic integration of artificial intelligence within large corporations.
The Diverse Role of a CFO in Complex Insurance Markets
Shaheen opened the discussion by outlining the complexity and scope of her responsibilities as CFO and regional controller at Marsh McLennan for the Middle East, particularly in the UAE and Saudi Arabia. She described the company as a diverse conglomerate that combines insurance with significant consulting arms, including HR and strategic advisory services through Oliver Wyman.
Her role spans multiple layers—regulatory compliance, internal financial governance, and board-level strategy—with duties fluctuating based on the business cycle. Month-end and quarter-end closures, audit reviews, and U.S. Securities and Exchange Commission (SEC) reporting are typically when her “regional controller” responsibilities take precedence due to Marsh McLennan's listing on the New York Stock Exchange. Meanwhile, her day-to-day CFO duties involve close collaboration with CEOs and business units to drive growth and strategy, particularly in emerging areas such as wealth management in the Saudi market.
Shaheen emphasized the fluid nature of time allocation across her tasks, shaped by external business demands and the internal dynamics of the company. The demanding landscape requires her to juggle between operational financial management, strategic growth initiatives, and board engagements, often within tight timelines, such as the spring board meeting season.
From Audit to CFO: The Strategic Evolution of Financial Leadership
The episode delved into the broader evolution of the CFO function from a role primarily focused on financial reporting to a strategic leadership position. Shaheen traced her career trajectory from audit engagements with major clients like Aviva and Direct Line Group to high-stakes corporate finance roles, including investor relations and IPO/M&A advisory.
She recalled her transition into CFO roles that demanded a keen understanding of not only financial mechanics but also business strategy and market positioning. A notable challenge early in her tenure as Aviva's head of investor relations was grappling with industry scrutiny from analysts and media—a role that required intimate knowledge of every nuance in the annual report and operational decisions.
Shaheen highlighted the growing expectation for CFOs to be strategic partners to CEOs, actively shaping company direction, exploring new markets, and innovating product lines. This shift reflects wider industry trends whereby financial leaders must blend technical finance skills with strategic foresight and operational oversight, particularly in high-growth and complex markets like the Middle East.
Understanding the Intricacies of Insurance and Reinsurance
Addressing the core of Marsh McLennan’s business, Shaheen provided a lucid explanation of insurance fundamentals and their complexities far beyond the consumer-facing perception of paying premiums and submitting claims. She explained that insurance is a highly regulated, capital-intensive industry requiring sophisticated risk modeling and data analytics.
Shaheen touched on the 2008-2009 financial crisis as a pivotal learning point, noting how insurance giants like AIG demonstrated systemic risk due to their immense size and interconnectedness. This crisis underscored the imperative for regulators and companies to manage capital and risk prudently.
A significant portion of the conversation centered around reinsurance—the practice of insurance companies insuring themselves to diversify and mitigate risk exposure. Shaheen described reinsurance as “insurance for insurance companies,” where large risks like oil refineries or airline fleets are parcelled out across multiple reinsurers to prevent any single company from catastrophic losses. She described how risk appetites dictate the proportion of risk retained and ceded, enabled by sophisticated models and regulatory oversight, especially in mature markets with regimes like Solvency II in Europe.
The episode explored scenarios highlighting complex risk-sharing dynamics among insurers and reinsurers, showing how cascading reinsurance arrangements reduce volatility but also introduce layers of exposure. Shaheen reassured that stringent corporate governance, regulatory frameworks, and capital adequacy requirements prevent the failure of one company from triggering systemic collapse. Nevertheless, she acknowledged this remains a delicate balance that requires constant vigilance.
Regulatory Evolution and Market Adaptation in the Middle East
Shaheen shared her insights into the evolving regulatory landscape in the UAE and Saudi Arabia, emphasizing the rapid changes and occasional challenges these markets face in keeping pace with global standards. She illustrated this with examples like the frequent renaming and restructuring of Saudi Arabia’s tax authority and the introduction of corporate tax frameworks that are relatively new compared to longstanding Western regimes.
She recounted episodes where regulatory demands arrived retrospectively, creating contextual difficulties for multinational companies already closed their financial books and reported to the market. Nonetheless, she acknowledged progress in regulatory maturity and highlighted the need for companies to balance compliance with the materiality of their regional operations relative to their global footprint.
On the topic of government-backed insurance companies in the region, Shaheen acknowledged competition but did not view it as unduly detrimental. Instead, she pointed to Marsh McLennan’s focus on innovation and diversification, including expanding wealth management offerings—a relatively recent addition to their Saudi operations.
Sharia Compliance and its Implications for Insurance and Wealth Management
An intriguing segment of the dialogue addressed the sensitive subject of Sharia compliance in insurance, a significant factor in predominantly Muslim markets. Shaheen shared candid reflections on why conventional insurance products often do not align fully with Islamic principles, particularly due to elements such as interest income and certain types of risk-sharing that conflict with religious tenets.
She observed that Marsh McLennan does not currently offer Takaful (Islamic insurance) products but acknowledged that dedicated Takaful companies operate with Sharia boards that ensure product compliance. Moreover, she highlighted that investment strategies underpinning insurance and wealth portfolios attract considerable scrutiny, making Sharia-compliant investing a crucial consideration for regional clients.
Regarding wealth management services expanding into Saudi Arabia under the Mercer brand, Shaheen noted that Sharia-compliant investment products and advisory are under active exploration. Clients demanding such offerings expect full transparency on how funds are managed in compliance with Islamic law, including segregated investment vehicles dedicated to Sharia-compliant assets.
Harnessing Artificial Intelligence and Digital Transformation
The final theme of the episode revolved around the adoption and integration of artificial intelligence (AI) within large organizations like Marsh McLennan. Shaheen described how AI tools have transitioned from email assistance functions to powerful engines that enhance internal knowledge retrieval, risk analysis, and proposal development.
She detailed Marsh McLennan’s proprietary AI platform “Len AI,” which enables users to quickly access knowledge repositories spanning over 75 countries—a task which previously could take hours or days. This tool aids consulting teams in generating custom proposals by drawing on vast internal data, offering a competitive advantage and operational efficiency.
However, Shaheen cautioned that due to the company’s scale and regulatory constraints, especially regarding client data security, broad deployments often originate from headquarters, particularly in the U.S. Subsequently, regional offices participate as pilot testers and adopt solutions gradually.
She articulated a thoughtful perspective on the current AI investment climate, acknowledging the initial enthusiasm and heavy spending across multiple initiatives. With shareholder scrutiny now intensifying, companies must demonstrate tangible returns on AI investments through efficiencies and growth, moving beyond the “shiny object” phase.
Finally, Shaheen stressed the importance of addressing technological literacy within teams, noting that finance professionals can be resistant to change and may cling to legacy processes. Embracing new tools requires ongoing education and a cultural shift, with leadership nurturing a learning mindset to ensure AI enables transformation rather than becoming an underused expense.
Shaheen Iqbal’s discussion on The Dollar Diaries provided a rare window into the intricate intersection of insurance, finance leadership, regulatory evolution, and innovative technology. Her practical experiences navigating multinational compliance frameworks, market expansion, Sharia considerations, and digital transformation underscore the challenges and opportunities shaping today’s financial landscape.
As companies face intensifying regulatory expectations and technological disruption, agile CFOs like Shaheen are vital in steering strategic growth, ensuring financial resilience, and embracing innovations responsibly. The Middle East’s dynamic markets offer fertile ground for expanding insurance and wealth management products attuned to regional culture and compliance norms.
Looking ahead, Marsh McLennan and similar organizations will likely continue refining their risk management techniques and leveraging AI to unlock value and operational excellence. Shaheen’s insights highlight a future where sophisticated data analytics, coupled with strategic foresight and prudent governance, will define success in the insurance and financial sectors worldwide.
This episode is an essential listen for financiers, risk managers, regulators, and technologists seeking a comprehensive understanding of the forces shaping global insurance markets and corporate finance leadership in the 21st century.