UAE – Amending fire contracts and raising prices
Tuesday, 05 03 2016, Category: Insurance and Reinsurance, Country: U.A.E
Managers working in brokerage and consulting companies said that insurance companies operating in the local market consider amending the conditions of fire insurance contracts, indicating that there is a possibility to raise prices during the current year especially given the pressures practiced by international reinsurance companies.
They mentioned to “Emarat Alyoum” that primary insurance companies could impose conditions and mechanisms in order to limit potential losses, indicating that the fire insurance price review could affect old facilities and residential towers given the nature of the material used in such buildings.
In details, Mr. Musa Al Shawahin the executive director of “ME Partners” insurance consultants and risk management said “fire insurance contract prices rely on recorded losses and the level of risks in the market, taking into consideration the location of the facility, modality of operation and other factors”, indicating that “direct insurance companies operating in the local market rely on reinsurance for a large part of underwritten risks”.
Source: “Emarat Alyoum”