AXA Gulf uncovered report highlights two-thirds of drivers don't understand insurance jargon

Dubai: AXA Gulf, one of the largest international insurers in the GCC, today published its Car Insurance Uncovered report.

The report includes new data examining the challenges customers face when purchasing car insurance in the UAE. The results highlighted that while most of the respondents recognise the need for car insurance, many do not understand the jargon used by insurers, the coverage that different policies offer or the factors that contribute to their premium – 59% of the respondents had no idea how their premium was calculated. Furthermore, approximately 98% of the respondents believe that insurance companies make a big profit from motor insurance – when, in reality, the profitability of car insurance is quite challenging given the increasing cost of claims and the competitiveness of the market, which consequently leads to a significant decrease in premiums year-on-year. Respondents were also unaware of the true cost of having their car repaired in the UAE – they estimated the cost to be only a quarter of the actual cost of repairs borne by insurance companies.

The survey further revealed that 67% of the respondents were unaware of basic insurance terms such as TP (Third-Party) and only 1 in 5 respondents knew that the acronym NCD stands for No- Claims Discount. The study also found that more than a quarter of the respondents do not check their policy for additional covers or benefits, although many insurers offer additional benefits on top of their standard comprehensive cover. Most insurers will charge for these additional benefits, but some provide them for free, as part of the policy. For example, AXA Gulf’s car insurance policy includes a free airport pick-up and drop-off service for its customers. It is therefore highly recommended for customers to check any additional benefits that are included as part of a car insurance policy before purchasing, to avoid paying for services that won’t be used, or worse, finding themselves out of pocket because they failed to select a cover that they actually needed.

Commenting on the survey Franck Heimburger, Chief Personal Lines Officer at AXA Gulf, said; “At AXA, we believe in simplifying and relaying the importance and benefits of car insurance policies not only to our policyholders, but also to the general public. We care about the feedback we have received from our respondents and want to educate the general public and raise awareness about the nuances associated with car insurance in the UAE. The most important element of any car insurance is the service you receive when you submit a claim. When choosing a car insurer, you should ensure that the insurers provide a full 24/7 claims service, that they are happy to guarantee all repairs and offer the option of a hire car whilst yours is being repaired.

Over the years, AXA has offered various benefits to its customers by introducing a range of new technology-driven products that help simplify the potentially complex process of taking out car insurance. We will continue to champion simplicity and transparency as it is vitally important to provide contemporary solutions that align with our customers' changing needs. As part of our recent digital transformation programme, we launched an enhanced, streamlined, easy to use, online and mobile portal for our motor customers, creating a new experience that puts customers in control from the safety of their homes. This has enabled a simple end-to-end online process where requesting a quote and purchasing a car insurance policy is fast and easy, and provides utmost transparency in all policy terms, conditions and benefits.

At AXA, our purpose is to protect what matters, and as the largest global insurance provider in the UAE, we strive to provide you with a wide range of car insurance covers to fit your needs, whilst making sure we provide excellence and quality in everything we deliver.”

The study is a result of a survey AXA Gulf carried out in collaboration with Censuswide, a leading data, insights, and consulting company. A sample of over 1000 people who own car insurance in the UAE was surveyed.

To view the AXA Gulf Car Insurance Uncovered Report, download the full report here.

Those interested in learning more about AXA Gulf’s car insurance can call 800 AXA (292) or visit our website.

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ABOUT AXA

AXA, one of the largest global insurers, is a worldwide leader in Insurance and Asset Management with a purpose of acting for human progress by protecting what matters. In the Gulf region, AXA has been present for 70 years, offering a wide range of insurance products and services for corporate, SME and individual customers.

AXA in the Gulf is one of the largest international players in the GCC, covering the UAE, Oman, Bahrain and Qatar markets, with a workforce of over 800 employees, 15 branches and retail shops region-wide and over 1 million customers. With a range of products and services tailored to each customer, covering property & casualty insurance and life & health insurance, AXA in the Gulf is a multi-lined one-stop shop insurer.

Additionally, AXA is focused on helping the world better face climate risk, whilst also extending protection and risk knowledge to the public, in an effort to contribute to global economic development and become a trusted partner for customers in the region.

Recognised as a leading insurance brand, AXA has been winning several awards for its quality of services and products. For more information visit www.axa.ae 

FOR MORE INFORMATION:
AXA:                                                            
Patrick Abou Chahla
Communication Manager
patrick.abouchahla@axa-gulf.com
+971 4 447 6152 

WEBER SHANDWICK:
David Ross
Senior Account Director
DRoss@webershandwick.com
+971 4 445 4260 

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© Press Release 2020