Managers and experts confirmed that a local insurance companies insurance on new cars declined in the first quarter of the current year by 50 percent compared to the same period of last year, 2008, and the size of the insurance sector in the country about 13 billion dirhams, with a share of the insurance on the car between 40 and 50 percent the size of any share of general insurance auto insurance are estimated at between 5 and 6 billion dirhams.
They pointed out that this decline was the result of decline in car sales this year of the stresses in the lending banks on the one hand and the low purchasing power and anticipation of the economic conditions of people on the other.
Also declined due to the intensification of price competition among insurance companies, or to more than 20 percent, prompting many managers and workers in the sector are invited to compete on the basis of the quality of insurance, the added value provided and not on the basis of prices that have reached low levels, and irrational, so there are no more room for competition on this basis.
Khalilzad said Said, director of «United Insurance Company» The car insurance sector is the largest proportion among all sectors, with some of the companies to between 50 and 60 percent.
He said that this sector was affected significantly in the past several months that accompanied the crisis, and continues to influence the rates vary from company to company, pointing out that the decline in new car insurance came to more than 40 percent during the first quarter of this year compared to the same period last year.
He pointed out that auto insurance has declined in the last period for obvious reasons Ki_dd banks to grant loans for all sectors including the automotive finance sector, as well as the fears of people from buying cars-and-see mode.
He said that the continuation of the process of price competition and price break between the insurance companies would not be beneficial and that the insurance companies going to compete on the basis of value added at the request of clients or just the additional advantage of the insurance companies on matters such as insurance in the private car and to alternative car insurance agent in the event of any incident of his car, in addition to the question of assistance on the roads.
For his part, said Amer Aqlah director of the Falcon car company in the National Insurance «were not affected by the process of renewing the insurance on the car previously secured the global financial crisis and the repercussions that followed, but the impact was significant in securing new cars, where the demand for new insurance rate almost 50 percent, and the the beginnings of the decline started in the fourth quarter of last year 2008.
He pointed out that such declines were due to banks, stressing that the financing of cars has led to a significant decline in sales and this is what we have seen and noticed many of the presentations offered by the auto companies, as a result of lack of demand for procurement.
The insurance companies are beginning to focus on attracting customers through a variety of additional benefits and development in efficiency and quality of work insurance, in addition to price competition, which brought the price of auto insurance and others to very low levels, which is no longer room for competition in this area, pointing out that the companies started services were not put in place, maintain and expand the provision of other services.
Abdel Karim said Ascol director of the Office for the Prevention of losses in the Arab insurance companies, banks no longer give loans as in the past and therefore it is natural to decline with sales of cars and insurance, the market in this period suffered a lot especially as the car insurance sector and one of the most important sectors for the most active companies insurance.
He pointed out that he could note the vulnerability of all auto companies, the global financial crisis and the decline in sales of promotional and advertising methods of the companies in attracting customers, auto companies did not follow the method of sending messages by telephone entice customers to secure a free one year or more, in addition to the maintenance of more years than it was previously, and the provision of facilities to pay in the face of stresses in the funding banks, but the regression of the market despite the existence of facilities and lower prices reflect either a fear of people from the purchase, or the weakness of the purchasing power of many of them, especially those working in the real estate companies.
He pointed out that this would cost the insurance companies operating losses since, in light of these circumstances will be compensation to the insured vehicles in the previous year, especially in the ones, which secured the second half of the premiums this year stalled at this level for many of the companies or from the profits of the year past and therefore would vaporize all the profits and reduce opportunities for companies to grow.
They pointed out that this decline was the result of decline in car sales this year of the stresses in the lending banks on the one hand and the low purchasing power and anticipation of the economic conditions of people on the other.
Also declined due to the intensification of price competition among insurance companies, or to more than 20 percent, prompting many managers and workers in the sector are invited to compete on the basis of the quality of insurance, the added value provided and not on the basis of prices that have reached low levels, and irrational, so there are no more room for competition on this basis.
Khalilzad said Said, director of «United Insurance Company» The car insurance sector is the largest proportion among all sectors, with some of the companies to between 50 and 60 percent.
He said that this sector was affected significantly in the past several months that accompanied the crisis, and continues to influence the rates vary from company to company, pointing out that the decline in new car insurance came to more than 40 percent during the first quarter of this year compared to the same period last year.
He pointed out that auto insurance has declined in the last period for obvious reasons Ki_dd banks to grant loans for all sectors including the automotive finance sector, as well as the fears of people from buying cars-and-see mode.
He said that the continuation of the process of price competition and price break between the insurance companies would not be beneficial and that the insurance companies going to compete on the basis of value added at the request of clients or just the additional advantage of the insurance companies on matters such as insurance in the private car and to alternative car insurance agent in the event of any incident of his car, in addition to the question of assistance on the roads.
For his part, said Amer Aqlah director of the Falcon car company in the National Insurance «were not affected by the process of renewing the insurance on the car previously secured the global financial crisis and the repercussions that followed, but the impact was significant in securing new cars, where the demand for new insurance rate almost 50 percent, and the the beginnings of the decline started in the fourth quarter of last year 2008.
He pointed out that such declines were due to banks, stressing that the financing of cars has led to a significant decline in sales and this is what we have seen and noticed many of the presentations offered by the auto companies, as a result of lack of demand for procurement.
The insurance companies are beginning to focus on attracting customers through a variety of additional benefits and development in efficiency and quality of work insurance, in addition to price competition, which brought the price of auto insurance and others to very low levels, which is no longer room for competition in this area, pointing out that the companies started services were not put in place, maintain and expand the provision of other services.
Abdel Karim said Ascol director of the Office for the Prevention of losses in the Arab insurance companies, banks no longer give loans as in the past and therefore it is natural to decline with sales of cars and insurance, the market in this period suffered a lot especially as the car insurance sector and one of the most important sectors for the most active companies insurance.
He pointed out that he could note the vulnerability of all auto companies, the global financial crisis and the decline in sales of promotional and advertising methods of the companies in attracting customers, auto companies did not follow the method of sending messages by telephone entice customers to secure a free one year or more, in addition to the maintenance of more years than it was previously, and the provision of facilities to pay in the face of stresses in the funding banks, but the regression of the market despite the existence of facilities and lower prices reflect either a fear of people from the purchase, or the weakness of the purchasing power of many of them, especially those working in the real estate companies.
He pointed out that this would cost the insurance companies operating losses since, in light of these circumstances will be compensation to the insured vehicles in the previous year, especially in the ones, which secured the second half of the premiums this year stalled at this level for many of the companies or from the profits of the year past and therefore would vaporize all the profits and reduce opportunities for companies to grow.
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