Expected change in the pricing of motor risks

Driving is an inexpensive activity in the UAE where cars are very cheap, repair costs reasonable and fuel prices unbeatable. Yet, only insurance tariffs derogate from the rule.

Insurers are deprived of a consistent statistical database that would enable them to assess the risk. Premiums are primarily based on the value of vehicles, which means that bad drivers are subsidized by good drivers.

This situation is about to change when nearly 60% of motor insurers will have access to the database developed by the police for drivers having caused an accident.
Each risk will therefore be fairly assessed, which will have its impact on insurance premiums.