Price hikes are expected for some insurance products in the UAE on the back of high demand in the second half of 2024, according to Mr Gautam Datta, CEO of the UAE-based Islamic insurance group, Watania International Holding.
In an interview with Zawya Arabia, Mr Datta also indicated that premiums would increase because of the impact of natural catastrophic events such as the heavy rains that hit the country early in the second quarter of this year.
He believes that insurance companies will also be affected by the rise in reinsurance prices, which are expected to have an impact until the end of the fiscal year 2025. The increase in insurance premiums is predicted to be by 20-50% during the coming year, especially in property and cars.
In addition, with the potential for more severe and frequent natural events due to the effects of climate change, insurers will need to take climate change, including unseasonal rainfall, into account in the future.
“Given the events of April 2024, it is important to highlight the importance of having insurance products that cover the needs of individuals and families against the effects of such events, such as home contents insurance, which is an existing product but was not widely accepted by people. We believe that insurance companies, including us, should work to facilitate the procedures for providing these services during the coming period,” said Mr Datta.