Saudi Arabia – Vehicle price increase won’t affect premium
Tuesday, 01 26 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
Although insurance companies said that the motor vehicle and spare parts price decreases will not affect the prices of compulsory motor insurance in KSA, they confirmed that comprehensive motor insurance prices will decrease along the vehicle price decreases, indicating that the comprehensive insurance price decreases will be significant, especially given that the motor vehicle prices decreased by more than 20% of the previous value.
They also indicated that the compulsory motor insurance prices will keep increasing for different reasons. The most important reason is the increase in number of accidents especially given that Saudi Arabia is the second most affected country by accidents where it suffered from an increase in accidents estimated at 30% annually. Moreover, the Saudi Arabian Monetary Agency is reviewing prices which are set every three months.
Mr. Adel Issa the media spokesperson of insurance companies said that the decrease in motor vehicle prices would not affect insurance prices indicating a 30% increase in accidents and an increasing loss ratio.