Saudi Arabia – Insurers’ capital increase is not a solution
Wednesday, 03 09 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
In light of the challenges facing the commercial sectors, there were accelerated calls for mergers in order to build strong entities that can overcome difficulties such as the risk of insolvency or unsustainable losses and which can additionally deal with the strong market competition by achieving quality performance and adequate prices.
The lawyer Hisham Al-Askar specialized in corporate issues and financial securities told “Al Riyadh” that some insurance companies are incapable of competing due to weak operating performance as well as financing, marketing and management hurdles.
He added that this issue applies particularly on insurance companies where three companies only represent 60% of the market size, whereas 30% of the companies in the market suffer from a deep crisis, which threatens their capital.
Source: Al Riyadh Newspaper