UAE – Building insurance premiums lost abroad
Friday, 04 08 2016, Category: Insurance and Reinsurance, Country: U.A.E
Press report indicated that the premiums generated from the insurance of buildings are lost abroad as insurers have a very low premium retention for this class of business. This issue raises doubts about the professionalism of insurance companies.
The retention percentage of local insurance companies in insuring these buildings ranges between 0% and 18% of premiums.
“Al Roeya” newspaper quoted experts of the sector as saying that insurance companies are accepting a reinsurance commission or a retention that does not exceed three percent for some buildings. This low retention protections insurers from high risks but deprive them from premiums which are channeled to international companies.
Source: Emirates 71