Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

May 2025

UAE: Reinsurers raise premiums & tighten terms for fire business

Source: Middle East Insurance Review | Dec 2016

Insurance companies operating in the UAE are facing difficulty in reinsuring fire risks, particularly for old buildings with flammable claddings as premiums and terms have tightened for upcoming renewals, said insurance industry players.
 
   The funds of direct insurers are not sufficient for them to retain a large percentage of the premiums underwritten in this class of business, so they have to accept conditions imposed by international reinsurers, reported Emirates Today citing industry sources. They pointed out that the stringent reinsurance terms and conditions are reflected in the high premiums demanded by reinsurers depending on the nature of the building to be insured.
 
   Mr Jihad Faitrouni, CEO of Dubai Islamic Insurance & Reinsurance Company (AMAN), said that local companies face many adjustments to fire insurance prices and conditions which are imposed by reinsurers lately, taking into account recent fires in high-rise towers.
 
   He noted that reinsurers have also resorted to hazard classification, especially for buildings that have flammable claddings, as well as high-rise buildings, particularly residential ones.
 
   Insurance brokers have noticed increases in reinsurance premium rates for fire insurance, ranging between 5% and 50% depending on the type of building, the materials used in the construction, the geographic location, and other factors.
 
| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.