Saudi Arabia – Need to decrease the number of insurers
Saturday, 06 04 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. Abdulaziz Abu Al-Saud Vice-Chairman of the National Insurance Committee called for a decrease in the number of insurance companies in the local market to less than half the current number. Mr. Abdulaziz Abu Al-Saud told “Al Jazirah”: a mechanism should be found to encourage small and medium-sized companies to merge in order to establish larger entities capable of retaining a larger share of insurance policies’ business.
He confirmed that the presence of serious insurance companies will decrease operating expenses, limit price competition, and strengthen competition based on service and quality. This could also lead to a higher retention of insurance premiums inside KSA. He also explained that Saudi insurance companies suffered from SAR 21 billion claims in 2015 compared to SAR 17 billion claims in 2014, which is a 23 increase.