Mavens say risk-based pricing is riding upper renewal prices for some older and comfort cars regardless of sturdy festival within the insurance coverage marketplace.
Dubai: Motorists have reported upper insurance coverage renewal premiums, in particular for older cars and likely luxurious and high-performance fashions, regardless of now not submitting claims all the way through their coverage classes.
Shoppers stated they had been stunned by way of will increase in renewal prices in comparison to final yr, noting that the hikes had been extra noticeable for aging cars and comfort automobiles that require dear spare components and maintenance at accredited dealerships.
Alternatively, insurance coverage mavens stated the UAE motor insurance coverage marketplace is an increasing number of depending on risk-based pricing fairly than making use of across-the-board will increase, with festival amongst insurers serving to to handle general fee balance.
Chance-based pricingInsurance coverage professional Bassam Jalamiran
Insurance coverage professional Bassam Jalamiran stated the UAE automobile insurance coverage marketplace is changing into extra depending on pricing insurance policies according to the chance profile of each and every buyer.
“This trend reflects the development of underwriting tools and the use of data to determine prices more accurately,” he stated.
Jalamiran added that he does now not see proof of a normal build up in motor insurance coverage costs all the way through the primary part of 2026, noting that festival amongst insurers stays sturdy and has helped stay premiums in large part strong.
He defined that restricted will increase have passed off in explicit segments the place claims charges or reinsurance prices have risen.
Regulatory oversight
Jalamiran famous that the UAE insurance coverage sector is among the maximum regulated markets within the area.
He stated the Central Financial institution calls for insurance coverage corporations to habits periodic pricing evaluations via impartial actuaries, who get ready technical studies to verify pricing is according to sound actuarial rules and helps the monetary sustainability of insurers.
He added that the implementation of the IFRS 17 accounting usual has bolstered pricing self-discipline by way of requiring insurers to evaluate the adequacy of pricing from the outset of underwriting.
In line with Jalamiran, festival within the sector now relies an increasing number of on underwriting high quality, menace control and portfolio profitability fairly than competitive price-cutting.
Relative balance
Insurance coverage professional Montaser Khasawneh stated motor insurance coverage premiums remained reasonably strong all the way through the primary part of 2026.
“Some vehicle categories witnessed pricing adjustments, but these were not general increases and were linked to risk levels, claims history, vehicle type and the underwriting policies of individual companies,” he stated.
Khasawneh added that festival amongst insurers continues to stay premiums inside of affordable levels, with will increase or discounts decided by way of menace checks.
He famous that insurers proceed to function throughout the regulatory framework set by way of the Central Financial institution of the UAE, together with minimal and most pricing limits.
Insurance coverage fee levels
The pricing framework for obligatory motor insurance coverage has remained unchanged over the last yr and all the way through the primary part of 2026.
Premiums for personal four-cylinder saloon automobiles vary from Dh750 to Dh1,300, whilst pricing will increase in step with automobile class and engine capability, attaining as much as Dh2,100 for some classes.
Despite the fact that the regulatory limits have now not modified, policyholders have skilled various top rate changes relying on elements akin to twist of fate historical past, driving force age, automobile kind, restore prices and spare-parts costs.
Marketplace enlargement
In line with information from the Central Financial institution of the UAE, the rustic’s insurance coverage sector persisted to extend all the way through the primary quarter of 2026.
Overall written premiums rose 15.1% year-on-year to succeed in Dh27.5 billion.
Belongings and legal responsibility insurance coverage premiums, which come with motor insurance coverage, reached roughly Dh10 billion, representing an annual build up of eleven.1%.
In the meantime, general claims paid by way of insurance coverage corporations greater 14.5% to Dh12.6 billion all the way through the similar duration.
