UAE – 30% motor insurance price increase
Monday, 06 06 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies raised motor insurance prices by approximately 30% in order to avoid the series of accumulated losses. This move caused the companies to lose part of their insurance portfolio to the benefit of companies that are still burning their prices according brokerage managers and insurance sector experts.
The new prices reached three percent of the normal value of vehicles compared to 1.75 percent previously. For high value and sports vehicles, prices reached 5 percent from 3 percent previously whereas some other companies are still burning prices which range between 1.75% and 2%.
The executive director of United Gulf Insurance Brokers said that some companies suffered from a series of losses because of low prices in motor insurance. Therefore, they raised prices by more than 30% of the value of the car and often reached 40 percent.
Source: Al Roeya - UAE