UAE – Effect of motor insurance contract on profits
Monday, 04 24 2017, Category: Insurance and Reinsurance, Country: U.A.E
There were different opinions in the insurance sector about the effect of the new motor insurance unified contract on the profits of insurance companies in the first quarter of the current year.
Moreover, managers told “Emarat Al Youm” that most of the motor insurance contracts that follow the previous system are still inforce and only a small percentage has been already renewed according to the new system. Therefore, there is no clear effect on the profits of insurers during the first three months that followed the implementation of the new contract. Moreover, no profit jumps are expected. They indicated that at least a full year is needed for the new contract to affect fully profits. However, other managers said that all expectations show an increase in the profits of insurers during the first quarter of year 2017 with at least a 10% increase.
Source: Emarat Al Youm