Saudi Arabia – Motor insurance prices increase by 100%
Tuesday, 12 15 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
Saudi insurance companies increased the prices of motor insurance by 7%. Therefore, total increases in the motor insurance sector prices in Saudi Arabia reached 100% during only one year. Insurance companies argue that this increase is related to the increase in the number of accidents and fraud cases. However, the continued increases in insurance fees led many vehicle owners to avoid insurance amid calls upon the Saudi Arabian Monetary Agency (SAMA) to control insurance prices, setting a maximum for insurance contract prices and limiting the “chaos” prevalent in the insurance sector.
A senior official at one of the Saudi insurance companies told “al Hayat” (who chose not to reveal his name) that insurance companies raised motor insurance prices due the recent marked increase in traffic accidents. He also indicated that there are many cases of fraud and abuse when some customers take advantage of insurance contracts.
Source: Al Hayat