UAE – Minimum and Maximum prices motivate mergers
Tuesday, 01 03 2017, Category: Insurance and Reinsurance, Country: U.A.E
Insurance sector experts and workers said that the regulatory instructions issued by the Insurance Authority on motor insurance prices, which control the minimum and maximum prices would motivate insurers that practice underpricing and price competition toward mergers and acquisitions. Otherwise, they have to change their pricing policies or exit the market and invest in other sectors.
Experts said that the new system will protect the rights of policyholders, shareholders and companies. The insurance companies, agents and insurance brokers cannot charge any additional fees without the approval of the Authority. This in turn will relieve the policyholders and will encourage affordable prices in the insurance market as well as ensure technical pricing based on the recommendations of actuaries.
Source: Al Khaleej