The Emirates Insurance Association (EIA) has said that the prices of motor insurance policies have become balanced compared to the size of claims, after insurers raised prices within the limits set by the regulatory authorities.
Mr Mohammed Abandah, an EIA board member who is also head of the association’s Finance subcommittee and the Financial Crimes Technical subcommittee, said that many internal and external reasons affect vehicle insurance prices, including the rise in global prices, transportation and shipping costs, and reinsurance prices.
He said that the most important influential factor is the history of claims, noting that this year has witnessed an increase in them, reported Emirates Today. This raised costs and thus some insurers that had been selling motor insurance at unjustifiably low prices adjusted the premiums to balance the cost of claims.
Mr Abandah added that the balance would ensure the stability of prices and their convergence among insurers.
An insurance company executive, who preferred to remain anonymous, said that insurance prices in the UAE market are currently close, as companies have raised their prices and re-adjusted their operations within the limits permitted by the regulatory authorities, to be able to meet their financial obligations.
He added: “If there are differences, they are simple and depend on several factors, such as the level of coverage, the type of car, the driver’s record, in addition to the promotional offers provided by insurance companies, such as granting discounts to drivers without accidents or extending coverage to include agency repairs or glass insurance without incurring an additional charge or providing roadside assistance without additional fees.”