UAE – Decreasing prices at the expense of quality
Friday, 11 06 2015, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies try to attract customers by offering low motor insurance prices at the expense of the quality of the product. Thus insurers will have difficulties in honoring liabilities.
Motor insurance experts asked the Insurance Authority to intervene quickly to control the market after the entry of new companies which offer low prices which are inadequate given the true cost of insurance.
And they indicated that offering prices at the expense of quality will reflect negatively on the market and will create conflicts in case insurance companies cannot meet their liabilities toward customers.
Source: Al Roeya