News Middle East19 Nov 2020

UAE:Reinsurance terms to be tighter in Jan 2021

| 19 Nov 2020

Terms and condition of 2021 reinsurance agreements, which are currently being negotiated and drafted, will be more stringent, while premium rates will increase, insurance executives have confirmed.

Premium hikes will vary, depending on the classes of business. While the increases will be around 10% for some classes, they can range between 15% and 50% in other sectors such as aviation and event cancellation, reported Al Roeya.

According to insurance executives, the hardening trend is driven by factors that include:

  • the negative consequences worldwide of disasters such as fires and floods,

  • the decline in interest rates to unprecedented levels

  • the decline in investment returns

  • the COVID-19 pandemic

  • climate change.


 

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