UAE – Insurance prices differ according to profitability
Monday, 08 22 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance prices differ from one product to another and according to the specifics of the company that provides services and products to its customers. This is based mainly on the profit and loss accounts of these companies, which provide insurance services and products to the public.
Mr. Nader Qaddumi General Manager at Al Buhairah National Insurance Co said that “insurance prices in the UAE are considered to be low as many insurance companies in the country decrease their prices and do not follow sound underwriting practices in order to increase their market shares. This practice causes technical losses and is the main dilemma facing the insurance sector in the country”.
Mr. Qaddumi added that insurance prices differ from one country to another for different reasons such as the regulatory environment, the level of competition, the number of insurance companies, and the nature of risks.
Source: Al Khaleej