The Emirates Insurance Association reported that insurance prices for electric vehicles are set to decrease reasonably and acceptably for everyone. This follows the establishment of official dealers for most brands in the local market, which has made it easier to source spare parts, thereby speeding up repair times and reducing costs. According to Mohammed Muzher Hamada, Vice Chairman of the Higher Technical Committee and Chairman of the Automobiles Committee at the Emirates Insurance Association, the previous period saw an increase in insurance premiums for electric vehicles due to several key factors. The most significant was the lack of official dealers, unavailability of spare parts, and their high cost, especially for batteries. Any malfunction in the battery, being the core component of an electric vehicle, results in a total loss. These factors led to losses for insurance companies, forcing them to raise prices. Hamada added that reinsurance companies have been warning their partners since last year about the substantial losses associated with insuring electric vehicles, a problem not limited to our region but prevalent worldwide. He continued that high costs and repairs in ordinary workshops negatively impacted the market. Despite the premium increase, prices remained within the limits set by the regulatory authority, which caps the maximum at 5% of the vehicle's value. Hamada stated that the local market is expected to see a reasonable and acceptable decrease in electric vehicle insurance prices for all parties—policyholders and companies alike—ensuring policy rights without causing company losses. Hamada affirmed that the UAE insurance market is based on competition, and it is not in the interest of companies to raise prices without justification. The primary driver behind premium increases has been the losses incurred by companies, he emphasized, noting that price adjustments are always within the boundaries set by the regulatory authority, the Central Bank.
