Middle East - Palestine: Regulator warns insurers against tariff undercutting
Source: Middle East Insurance Review | Feb 2016
The Palestine Capital Market Authority (PCMA) has started 2016 with a directive to insurance companies requiring them to adhere to the minimum tariff rates for vehicle insurance.
The regulator warned of penalties for non-compliance with the tariff regulations, reported the Ma’an News Agency.
Tariff undercutting is an issue in the Palestine insurance market, with insurers offering customers discounts ranging from 10-30%.
Mr Barraq Nabulsi, PCMA Acting Head, said that there was no decision to raise insurance premiums. Rather, the authorities want insurance companies to commit to observing minimum insurance tariffs, whether in the motor business or others. He added that the PCMA has been receiving daily complaints from individuals or institutions, and insurance companies.
Last August, Mr Ayoub Zurub, Chairman of the Palestinian Insurance Federation (PIF), called for immediate action to find solutions to the problem of unlicensed vehicles. He said that it was important for insurers to abide by the minimum tariffs for mandatory auto insurance so that they would be capable of providing services to customers.
Vehicle insurance premiums in the Palestinian market stood at US$100.5 million in 2014, 8% higher than in 2013. The motor business accounted for nearly 60% of the total premiums of the industry, according to data on the PIF website.