Saudi Arabia – Mergers could marginalize insurers
Tuesday, 07 21 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
The insurance sector suffers from a weak performance and the dominance of three companies only on the market. Therefore, small insurers reverting to recapitalization in order to avoid being marginalized in mergers and acquisitions. So this led to rethinking the licensing conditions among which the low minimum capital set at SAR 100 million.
Given that around eight companies posted losses of 50%, an economic consultant told “Al Watan Newspaper” that the market needs quick solutions and the intervention of the Saudi Arabian Monetary Authority in order to stop price wars between small insurance companies, setting a minimum price for insurance policies, reconsidering licensing rules, asking to establish a specialized authority supervising insurance that matches the size of the Saudi economy and its growth.