UAE - Auto rates to increase by at least 25%
Source: Middle East Insurance Review | Nov 2016
The Emirates Insurance Association (EIA) has estimated that auto insurance premium rates will rise between 25% and 40% during the current year compared to last year, and will continue to increase in 2017.
EIA Secretary-General Fareed Lufti said that the motor insurance market is currently experiencing a state of price corrections in line with recent changes in regulations issued by the UAE Insurance Authority, reported Emirates Today.
The regulatory changes include requiring a review of prices by actuaries, and the issue of a unified insurance policy for mandatory third-party motor insurance and comprehensive motor insurance to be implemented next year that will increase benefits for policyholders.
Mr Lufti said that the changes will be favourable for policyholders as they would improve technical provisions, strengthen the financial position of insurance companies and improve service standards. He said that previously, several insurers faced difficulties because they had engaged in a price cutting war, which was reflected in their financial results, the low level of services provided to customers, and the high volume of complaints lodged by customers.