Foreign companies won’t enter the Saudi insurance market
Thursday, 09 10 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. Abdulaziz Abu Al-Saud, a member of the National Insurance Committee at the Saudi Council of Chambers said that large foreign companies will not find the Saudi insurance market attractive. The local insurance sector currently primarily offers insurance services in the health, motor and fire branches.
Mr. Abu Al-Saud confirmed according to news reported by the “Makkah” newspaper that the probability that new investment will enter the insurance sector is very low.
He mentioned the following arguments in this direction:
- The saturation of the local market with 35 companies exceeding the demand which can only absorb effectively 15 insurance companies.
- The low level of insurance service prices even after the enforcement of the independent insurance expert pricing.
- The large competition among companies.
Source: Argaam Plus