UAE – reinsurance renewals with strict conditions
Friday, 01 27 2017, Category: Insurance and Reinsurance, Country: U.A.E
The underwriting results of local insurance companies led reinsurers to harden their renewal conditions and link the level of commissions to technical performance in order to avoid the losses incurred during the past two years in the local market.
The hardening reinsurance conditions were reflected in the commissions received by insurance companies operating in the local market and their calculation method. As a result, reinsurers re linking the commission level to the technical performance of cedants, so they raise commissions if the underwriting is satisfactory and they lower commissions in case of losses.
Insurance sector officials said that the reinsurance hardening conditions did not affect all companies, so they only affected the badly performing companies.