UAE – Towers fires trigger insurance price increases
Saturday, 06 11 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies exploited the exceptional fires that occurred at some towers in order to raise the prices of insurance policies covering buildings.
These companies mentioned large claims, the need to provide replacement homes, and the pressure of reinsurers as the reason to raise prices.
Insurance companies’ officials revealed to “Al Roeya” that insurance prices for building not covered by flammable material increased from 0.25 per mil compared to 0.5 per mil for buildings covered by aluminum.
Insurance companies convened recently and agreed to increase the prices of insurance covering buildings after they reached 0.1 per mil. However, the Insurance Authority mentioned that this agreement is against the economic policy of the country built on free market.
Source: Al Roeya - UAE