UAE: Property premiums forecast to fall by up to 20%
Source: Middle East Insurance Review | Apr 2016
Property premiums in the UAE could fall by between 10% and 20% this year despite a spate of high-rise fires because of excess capacity in the market, according to Marsh Insurance Market Report 2016.
“The general liability market is highly competitive, especially for those accounts that are considered to be well risk-managed and profitable,” said the report.
“Recent high-profile fires are unlikely to impact underwriting attitudes however as these buildings are not excluded by reinsurance treaties, for example, the Dubai hotel fire on New Year’s Eve,” the report added.
Marsh said that some insurers believe the spate of recent losses could lead to requests for “more detailed underwriting submissions and being more vigilant on risk-management practice”.