UAE – Comprehensive and Third Party at minimum price
Monday, 01 16 2017, Category: Insurance and Reinsurance, Country: U.A.E
National and foreign insurance companies did not follow the overwhelming trend in the local market and offered instead “comprehensive” and “third party” motor insurance at the lowest minimum tariff allowed lately by the Insurance Authority according to a survey completed by “Al Ittihad” newspaper.
The comparative study of the price offers of a wide range of insurance companies showed large differences in prices. The price differences among companies for the same insurance contract exceeded 50% according to the pricing policies and mechanisms.
Most of the companies, which control approximately 60% of the motor insurance market in the country, chose to offer “comprehensive” and “third party” insurance at the maximum price in order to boost technical profits. However, for a group of companies, which control individually not greater than 5% of the market, the offered prices are close to the minimum allowed price in order to strengthen the additional market share.
Source: Al Ittihad