UAE – Motor insurance prices increased by 25%
Friday, 01 29 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies raised the prices of motor insurance by rates ranging between 10% and 25%, so the price rates increased to more than 2% of the car value compared to the previous years where rates were between 1.5% and 1.7% in order to limit their losses.
Experts said that raising prices to this level would not be useful since they are still considered low as companies are not able to control expenses given the maintenance and repair cost inflation and other loss making factors.
They added that despite the relative improvement of motor insurance prices, other companies are still underpricing insurance, which is harming the market and companies that write this business.
Source: Araa News