UAE - 20% 'no-claims' discounts for drivers
Tuesday, 03 27 2018, Category: Insurance and Reinsurance, Country: U.A.E
Safe drivers in the UAE, who haven't lodged a recent claim on their car insurance, can avail of discounts of up to 20% on their renewals, following amendments to the country's regulations that came into force in January this year.
Jonathan Rawling, CFO of Middle East comparison website yallacompare.com, said the lack of sophisticated pricing methodologies among the majority of insurers in the UAE led to the regulator stepping in to mandate the inclusion of driving history when determining quotes
"Many insurers do not adjust the premium at all based on your previous driving experiences - regardless of whether or not you have a no-claims certificate, which states you haven't made a claim on your car insurance, and are therefore less risky to insure," said Rawling.
"It's one of the most obvious examples of a relative lack of pricing sophistication in the Middle East's insurance industry.
"The UAE Insurance Authority has recognised the issues with this, and in its latest regulation amendments, has mandated that insurers give discounts for drivers who haven't claimed on their policies and want to renew."
Source: Arabian Business