Qatar – Strong competition leads to a decrease in motor insurance prices
Monday, 09 19 2016, Category: Insurance and Reinsurance, Country: Qatar
The profits of national insurance companies reached QR 759.1 million in the first half of the current year showing that the profits of the majority of companies decreased except Qatar Insurance Company, which posted a 4.27% in profit increase compared to the same period last year.
Experts identified the poor performance of the investment portfolios as the main reason for the profit decrease given the repercussions of the oil price decrease and the results on the local, regional and international markets. Moreover, the low insurance prices internationally and the strong and unsound competition do not serve the companies and not even consumers, indicating that motor insurance witnessed a strong competition, which led some companies to decrease the price of this class of business even though it is one of the riskiest businesses that triggers usually losses. So despite this situation companies were forced to decrease prices in order to preserve market shares.
Source: Al Sharq