Abu Dhabi motor insurance companies opened a new chapter in their businesses when a plan to access drivers’ information from a single database was announced. Insurance companies usually collect and store the personal information of individuals to whom they provide insurance cover. Accessing drivers’ information before offering them insurance cover will allow companies to decide the amount of premium to charge based on their past records. In that regard, the database will provide information that will help insurance companies to determine the level of risk associated with each applicant (Ruiz, 2014). Insurance companies have relied on vague information such as age and the nationality of applicants to issue insurance cover for many years. However, a centralized database will provide accurate and adequate information that will improve their operations. It will also improve road safety, reduce the number of fraudulent insurance claims filed by drivers, and enhance the process of determining the amount of premiums that applicants should pay (Ruiz, 2014). Careful drivers will pay low premiums while careless drivers will pay higher premiums. The data system will improve fairness because reckless drivers have been paying low premiums at the expense of careful drivers. I think that a common database will improve the operations of insurance companies by enabling them to issue insurance cover that is commensurate with the risk associated with different drivers. In addition, it will improve their profitability. Many insurance firms lose a lot of money because many drivers provide erroneous information in order to pay lower premiums. For instance, some individuals change their insurance companies after they get involved in road accidents because such occurrences usually result in higher premiums. Companies will not lose their clients due to fraudulent transactions that are usually initiated by reckless drivers. Insurance companies will benefit from access to accident histories of drivers who apply for insurance cover. They will get information about the number of accidents a driver has been involved in, the repairs done on their vehicle, and any insurance claims filed against their insurer (Ruiz, 2014). On the other hand, centralization of insurance information is a positive move that will save insurance companies a lot of money that is lost through fraudulent claims. According to the article, there are 35 companies that offer motor insurance and approximately 20 have agreed to share their information through a centralized database (Ruiz, 2014). Companies compete effectively in different markets due to their competitive advantages that are confidential and unknown to other firms. Requiring insurance companies to share information with others could cause resistance among some firms because of the unwillingness to expose their operations to competitors and government agencies. Some companies might fear that sharing information could lead to loss of clients. Dubai’s Roads and Transport Authority has presented a mandatory request to all insurance companies to prepare and issue data to the common database (Ruiz, 2014). Many companies that engage in illegal financial transactions keep their operations private for fear of exposure. Sharing information with other companies and government agencies could expose companies that might have been involved in illegal activities while