Saudi Arabia- Creating a database dedicated to motor risk
Wednesday, 12 30 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
Saudi insurers will launch in 2016 a database dedicated to motor risk. This solution will enable market participants to have reliable and updated information not only on infractions committed by drivers but also on road accidents occurring in the Kingdom. The information collected will provide the basis for better risk pricing.
The spokesman of the Saudi insurance companies assured that the motor third party liability tariffs should continue to increase until 2017.
In 2015, the cost of car insurance increased by over 100%. At the beginning of the year, the premium went from 850 SAR (226.5 USD) to 1500 SAR (400 USD) during the last quarter.
This rate increase should help insurers to minimize their losses in this loss-making sector.
Source: Atlas Magazine