UAE – Collusion to raise building insurance prices
Thursday, 04 14 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies entered collective agreements in order to set minimum insurance price rates for building. This is considered by some experts to be an illegal collusion and was rejected by the insurance authority since it is against the economic policy of the country build on free market where companies are free to compete.
The agreement of companies aims at raising the current prices which went down to 0.1 per mille. Therefore, the new minimum will be 0.25 per mille for buildings which are not covered by flammable materials and which have more than 20 flours. Moreover, the price of building covered by flammable materials will be 0.5 per mille.
The Insurance Authority confirmed that it will tackle the issue by communicating with companies in order to find a solution that suits the market, all parties and especially customers.
Source: Al Roeya