Saudi Arabia – Insurance brokers exposed to losses
Monday, 11 16 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
The economic analyst Dr. Yaseen Al-Jifri revealed that the Saudi Arabian Monetary Authority will take step to penalize insurance companies that sell directly policies to their customers indicating that insurers avoid dealing with insurance brokerage companies which market insurance policies in order to decrease the commissions they pay to these brokers. And Al-Jifri told “Al Riyadh” newspaper that insurance brokerage companies suffered from large losses due to the fact that insurance companies are selling insurance policies directly to customers, which is considered as a conflict of interest between insurance companies and insurance brokers.
He also indicated that the new corporate governance law issued by the Saudi Arabian Monetary Agency will support the progress of the sector by upholding integrity, transparency, and confidentiality.
Source: Al Riyadh newspaper