UAE: Regulator urges motor insurers to adhere to tariff system
Source: Middle East Insurance Review | Feb 2020
Motor insurance rates fell by around 30% on average last year, according to insurance broking sources who allege that insurers took advantage of the accident-free clean-record system to undercut their competitors.
Aware of market developments, the UAE Insurance Authority (IA) stated that it grants insurers the option to provide a discount on motor insurance premiums to a driver with a clean traffic record. The premiums are set out in the tariff system, reported Emirates Today.
The Authority warns that if it is proven that any insurer has charged motor premiums that deviate from the standards it has set, then the company will be in violation of regulations. In such a case, the IA will take action against the insurer.
The IA stated that through legislation and regulations, it seeks to encourage fair and effective competition among insurers, so that they would provide the best services at appropriate prices and with coverage.
Insurers are free to compete by providing prices within the limits set by the tariff system, said the regulator.
Motor insurance is the largest class of non-life business (excluding health insurance) in the UAE. In 2018, total motor premiums reached AED6.7bn ($1.8bn), accounting for 44% of total non-life premiums. M
AED1 = $0.27