United Arab Emirates – A Sudden Rise in Motor Comprehensive Insurance Prices
Wednesday, 05 20 2015, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies in the UAE have raised comprehensive motor insurance prices by 10% beginning last April, in conjunction with insurers being required to make financial payments to ambulance service providers. Prices of comprehensive motor insurance “agency repair” policies have increased by 10.4% bringing the average price of insurance for saloon cars to 3.7% of the total estimated value of the car compared to 3.35% in the same period last year. On the other hand, the average price of comprehensive insurance for SUVs and 4x4 cars has increased by 9.8% bringing the average price of the policy to around 3.9% compared to 3.55%. According to clients, insurance companies took advantage of the decision regarding the collection of ambulance services fees from insurers, and imposed large and sudden increases in motor insurance rates since the beginning of last month. However, the Emirates Insurance Association stated that the increase in insurance rates comes as a positive corrective measure after a long period of price deterioration and that there is no relationship between the sudden price increase and the collection of ambulance services fees.