OREANDA-NEWS. Given the critical role motor insurance plays in developing a company’s profile in a market, it is not surprising that it is one of the most fiercely competitive business segments in the Middle East.

Whilst all Middle East countries have legal requirements for drivers to purchase motor insurance, regulation differs from country to country. A new report from A.M. Best, titled, “Accelerating Competitive Conditions Pressurises Motor Insurance in the Middle East,” notes that in some jurisdictions, such as Egypt and Jordan, regulated tariffs on motor third-party liability (MTPL) mean that insurance companies cannot set the price or sometimes even refuse to insure the individual. As a consequence of the rigidity in pricing and the unprofitable nature of this product, some insurers are unable to compensate for MTPL losses through other profitable lines of business and have abandoned the motor market completely.