UAE - "Global reinsurance" is tightening the terms
Thursday, 10 15 2020, Category: Insurance and Reinsurance, Country: U.A.E
The negotiations currently underway between local insurance companies and global reinsurance institutions are witnessing a tightening of the terms of the contract expected during next January, by the latter, due to the Corona pandemic.
Officials in insurance companies told Al-Emarat Al-Youm that global reinsurance companies have been greatly affected by the Covid-19 pandemic and want to compensate for their losses by raising the prices that will be transferred to the final consumer represented by the insured, expecting the prices of some documents to rise. Especially in some sectors directly affected by the virus.
In detail, the Chairman of the Non-Marine Insurance Committee at the Emirates Insurance Association, Muhammad Othman, said that the global reinsurance institutions that local companies deal with must be well-rated at “A or B Plus” and not less than that, so the options are limited. Before the local company upon its annual contract with reinsurance companies.
Othman added that negotiations are currently underway in preparation for the contract during next January amid a strict trend by reinsurance companies due to the Corona pandemic, which greatly affected the results of their business, and for this reason they are heading to raise prices to compensate for their losses.
Source: Teller Report