Automobiles, motorbikes, lorries, cars, and other vehicles are covered by motor insurance. Because it offers financial protection in the event of vehicle damage as well as injuries to other drivers, passengers, or pedestrians (i.e., third-party cover), motor insurance is in great demand and is growing in popularity among consumers. As a result, obtaining sufficient auto insurance is both required by law and essential.
UAE Motor Insurance Market Driving Factors and Challenges
Drivers: Accidents, collisions, and other dangers or injury to third parties were created by people's ignorance. Car damage is not covered by the basic insurance policy, but third-party liability insurance covers any property damage the car owner causes to uninsured third parties. If third parties—such as pedestrians, drivers, and passengers in other cars—suffer property damage, disability, injuries, or death, this coverage provides financial assistance. However, this type of preparation helps to protect the interests of third parties. All of these factors are predicted to have a significant positive impact on the auto insurance market in the years to come.
One of the most prosperous economies in the Middle East is the United Arab Emirates (UAE), which has seen a significant influx of financial technology (Fintech) firms in recent years. Over 30% of fintech startups in the Middle East and North Africa (MENA) area are based in the United Arab Emirates. Motor insurers are able to integrate and create a variety of product platforms and mobile applications to meet the specific needs of their clients thanks to the fintech industry and the rise in digital payments. The UAE's motor insurance industry is expected to expand as a result of growing fintech, which has made it simple for consumers to buy and compare different auto insurance policies and assisted insurance businesses in providing their clients with the solutions they require.
Challenges: Human ignorance caused collisions, mishaps, and other risks or damage to other individuals. The standard insurance policy is unaffected by car damage, but third-party liability insurance protects the vehicle's owner against any property damage to uninsured third parties. Third parties are shielded from monetary loss in the event that they sustain injuries, disabilities, property damage, or pass away. This includes pedestrians, drivers, and passengers in other vehicles. The interests of third parties are, however, protected by this type of preparation. The market for auto insurance is expected to benefit greatly from each of these factors in the years to come.
Impact of COVID-19 on UAE Motor Insurance Market
The COVID-19 pandemic had a major effect on the United Arab Emirates' motor insurance industry. Due to the country's travel limitations and lockdown, which drastically cut the number of vehicles on the road, there were fewer traffic accidents and claims. Insurers changed their pricing tactics as a result of the decreased risk exposure; some even offered policyholders premium discounts or refunds. However, the economic slump also caused financial hardships for many individuals and organizations, leading some to reduce or stop purchasing insurance altogether. Digital use has increased as a result of some insurers moving to online platforms for sales and claims processing in an effort to decrease in-person interactions.
UAE Motor Insurance Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Abu Dhabi National Insurance Company, Al Buhaira National Insurance Co, Al Dhafra Insurance Company, Assicurazioni Generali S.P.A., Emirates Insurance Company, Islamic Arab Insurance Company, National General Insurance Co. (P.S.C), Orient Insurance PJSC, Sukoon Insurance, Union Insurance Co., and Others.
UAE Motor Insurance Market Segmentation:
By Coverage: Based on the Coverage, UAE Motor Insurance Market is segmented as; Liability Coverage, Collision Coverage, Comprehensive Insurance, Others.
By Distribution Channel: Based on the Distribution Channel, UAE Motor Insurance Market is segmented as; Insurance Agents/ Brokers, Direct Response, Banks, Others.
By Vehicle Age: Based on the Vehicle Age, UAE Motor Insurance Market is segmented as; New Vehicles, Old Vehicles.
By Application: Based on the Application, UAE Motor Insurance Market is segmented as; Commercial Vehicle, Personal Vehicle
By Region: This research also includes data for Eastern, Western, Northern, Southern.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.