News
UAE Insurers Could Post Motor Losses
| February 28, 2010 by Rob Morris
More competition forces insurers to lower motor premium rates.
Insurers in Dubai are expected to post motor insurance losses this year as lower premium rates arising from increased car cover competition hits the segment.
Some insurance companies have even cancelled deals and given motor insurance policyholders their money back, a UAE newspaper reported.
Omer Elamin, senior managing director of UAE insurance company Orient, said with motor insurance premiums falling on average by 30-40% last year, few companies would profit from this market in 2010.
But he added most insurers would continue offering motor policies as they still generated good cashflows, an important factor for any insurance company.
Increased competition stemming from more takaful companies entering the market has forced insurance companies to slash their motor policy premium rates.
