The UAE insurance sector is facing increasing pressure as premium increases are becoming more frequent, and the policyholders and stakeholders are worried. The insurers face a challenge in balancing the increasing operational costs and claims with the need to keep coverage affordable.
Experts point out a number of reasons for this surge in premiums, including inflation, higher healthcare costs, and increased risk exposure in specific sectors. While the increases may be necessary to ensure the financial well-being of the industry, they can alienate customers if not handled with caution.
This is an appeal to the insurers to adopt innovative methods to make premium rise bears a lesser burden. It includes tapping advanced data analytics, preventive measures that can reduce a claim, and enhanced transparency in pricing.
A collaborative effort between regulators, insurers, and policyholders is essential to ensure premium affordability without compromising the quality of coverage. Addressing this issue proactively will help sustain consumer trust and the long-term stability of the UAE insurance market.
