Brokers attribute document pricing flexibility to competition

Insurance companies offer "minimum" rates for drivers who cause accidents

• Insurance companies have been tough on policy pricing policies for drivers with accidents and claims.

  Archives

picture

Brokerage companies working in insurance services confirmed that the prices of car insurance policies are still at low levels in light of the state of competition, pointing out that drivers who cause accidents and claims, they also get low prices when renewing insurance policies during the recent period.

She explained to "Emirates Today" that the largest part of dealers who cause accidents resort to a new insurance company if the price of the policy is raised.

Low levels

Adnan Elias, the sales manager at Fidelity Insurance Services, said that car insurance rates are still at low levels during the current period, in light of competition between insurance companies, indicating that companies have expanded in light of the Corona virus pandemic in the policies of reducing prices documents.

Ilias added that the drivers who caused accidents have also received competitive rates for vehicle insurance during the recent period, pointing out that if a customer causes a claim that did not cost the insurance company a large sum of money, then some companies renew the insurance policy, without any price increase. Framework for maintaining this customer.

He continued: «If the cost of the claim is large, as a percentage of the installments paid by the customer, the company imposes an increase in the price of the document upon renewal, or it is satisfied with providing a document (against others) only, and in this case, most of the dealers may not accept the increase, and resort To a new insurance company in the market ».

Elias pointed out that most companies give the new customer the minimum price that was mentioned in the vehicle insurance policy system issued by the Insurance Authority, and it is definitely lower than the price set by the insurance company that incurred the costs of the "claim" in the previous year.

He said, "In some cases, the traffic record history of the new dealers is not checked and whether or not they caused accidents, and therefore they may get competitive prices as well."

Basis of pricing

In a related context, the executive director of “United Gulf Insurance Brokers,” Saeed Al Muhairi, said that part of the insurance companies operating in the local market does not show interest in the technical basis for pricing car insurance policies, in light of the state of competition in the market, especially during The pandemic, in agreement with his counterpart Elias, is that drivers who cause accidents and claims are also getting very competitive prices, represented in the minimum limits stipulated in the motor insurance system.

Al-Muhairi added: “In the past, there was tightening pricing policies for drivers who caused accidents and claims, but we have noticed more flexibility towards them in the recent period. Gives them lower prices compared to the previous company ».

He stressed that some insurance brokers and companies do not check the traffic record of the new customer, and he is given prices at the minimum levels, regardless of the costs that he may have caused in the previous year with another company, expecting that vehicle insurance rates will continue to decline during the current year.

"No Accidents" Certificate

For his part, the CEO of "My Partners" for insurance and risk management consultancy, Moussa Al-Shawheen, said that the largest part of dealers who cause accidents resort to a new insurance company if the policy price is raised upon renewal.

Al-Shawahin added that some companies require from new dealers a certificate proving that they have not caused traffic accidents during the previous year if they ask for reduced prices, or give them regular prices according to their underwriting policies, and these are usually at minimum levels, given the decline in car insurance prices during the past months. .

He pointed out that insurance companies are forced to request a "no accidents" certificate, due to the lack of such data available to them.

Follow our latest local and sports news, and the latest political and economic developments via Google news