Discover what's new in the world of insurance

UAE gets first 3rd-party motor insurance for rain and flood damages

An insurance covering third-party unintentional loss or damage to motor vehicles from storms and floods has been introduced for the first time in the UAE. Flood Guard, a product of the Abu Dhabi-listed Al Fujairah National Insurance Co. (AFNIC), provides coverage for company-owned and personal vehicles used solely for recreational or personal use. This is particularly useful for vehicles older than seven years old, which frequently do not qualify for comprehensive insurance. Commercial vehicles are not covered by this policy.

?Policyholders can choose coverage levels of Dh25,000 or Dh50,000 by paying premiums of Dh350 and Dh550, respectively, for a 12-month term. All drivers in the UAE who have already purchased vehicle insurance policies from other insurers are eligible to buy this policy as it is a stand-alone offering.

This product is only compatible with current motor TPL policies from AFNIC or other insurers; it does not replace motor comprehensive, motor third-party liability (TPL), or statutory vehicle insurance. Fifteen days following the policy's start date, Flood Guard will be active.

MOH suspends Afya retiree health insurance services

Due to the company's failure to fulfill its contractual responsibilities, the Kuwaiti Ministry of Health declared that Afya Retiree Health Insurance Services would be suspended, effectively ending the contract. The ministry declared in a statement that it would take all available legal actions against the offending company, including bringing a lawsuit and requesting damages for losses incurred as a result of the company's violation of the contract.

?The ministry further stated that the contract was terminated due to their refusal to adhere to the same prior terms and prices without an increase, as well as a number of other infractions, and in compliance with Law No. 71 of 2023 concerning the addition of new insurance services and Law No. 114 of 2014 concerning health insurance for retired citizens.

In order to make clear the necessary legal actions that must be taken against the concerned company, the ministry addressed Kuwait's legal authorities. The ministry pledged to provide all primary, secondary, and specialty health care services to the residents insured by Afya health insurance services.

Najm reveals updated criteria and indicators for detecting insurance fraud in traffic accidents?

Najm for Insurance Services has declared that it is working to improve the detection of insurance fraud and create new indicators for determining traffic accident legitimacy and fraud detection. This declaration was made at the King Abdulaziz Center for National Dialogue in Riyadh during the Anti-Insurance Fraud Workshop, which was hosted by Najm. Along with Najm, leaders from insurance companies attended the workshop, which was sponsored by the Insurance Authority and the General Department of Traffic.

?Najm upgraded its fraud detection indicators for road accidents based on discussions and recommendations from the three workshops that were held in Khobar, Jeddah, and Riyadh throughout 2024. They were aimed at preventing fraud in the vehicle insurance industry and were carried out in collaboration with Najm's strategic partners.?

Consequently, a set of seven critical indicators was created, encompassing factors such as the accident's timing, driver, circumstances, accident report, disparities in damage, pre-existing damage, and evidence found at the scene of the accident. The party and vehicle records from Najm's database are also updated, and they aid in verifying the legitimacy of accidents.

Saudi company launches one-of-its-kind pet insurance offering

To better serve the evolving needs of pet owners in Riyadh and beyond, Tree Digital Insurance Agency in Saudi Arabia has introduced the first pet insurance policy of its type in the nation.?

Tree's Pet Insurance offers comprehensive coverage for cats and dogs, providing financial security for pet owners against the costs of veterinary care, operations, medications, and more. It is the only insurance product of its type licensed by the Insurance Authority in Saudi Arabia.

According to a statement, the launch of this product marks a critical turning point in Tree's objective to fill market gaps with creative, customer-focused solutions. “Today’s launch of Pet Insurance marks a pivotal moment in the evolution of Saudi Arabia’s insurance sector,” said Preeti Mundhra, a member of Tree’s executive management. As the first digital insurance agency in the Kingdom, we are committed to driving digital transformation and bringing innovative products to market that address the unique needs of our customers. This product not only protects pets but also enhances the overall support system available to pet owners, contributing to improvements in the quality of life envisioned in Vision 2030.”

Crowd Strike event reveals opportunity for non-malicious cyber coverage

The Crowd Strike event, according to Broadstone's most recent Insurance Risk Monitor, challenges the cyber insurance market's traditional focus on malevolent actors and presents a chance to provide more comprehensive coverage for non-malicious losses. The market has largely dealt with malicious events up until recently, according to Broadstone, which has kept claims from the Crowd Strike event, which was brought on by an unintended software update error, relatively confined.

On the other hand, policyholders suffered financial losses, and they probably wonder if it was just to leave unintentional losses out of their coverage. According to Broadstone, this could allow the market a chance to offer more comprehensive coverage for losses resulting from non-malicious causes. The event also calls into question how accurately cyber insurance models capture the state of technology today. Crowd Strike was only one of several background services running on the affected machines; other software might also have an equivalent impact on the Windows operating system.

Broadstone emphasizes the necessity of a more detailed catalogue of the IT landscape in order to improve models and more effectively track and quantify risks. Considering how quickly technology is developing, this catalogue requires to be dynamic and updated frequently.

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