Saudi Arabia – Lower interest rates causes insurance losses
Tuesday, 08 02 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The “2016 Financial Stability” report issued by the Saudi Arabian Monetary Agency revealed that the lower interest rates locally and internationally have caused losses of approximately SAR 9 million in year 2015 in the insurance sector for the first time since year 2010 despite the capital increase of 25% reaching more than SAR 12.6 billion and the total written premium increase of around 19.7% reaching SAR 36.5 billion compared to a 5.6% increase in year 2014.
The report indicated that the challenges facing the insurance sector under the current market conditions will push insurers toward amending their investment portfolios and taking appropriate measures to increase resilience in order to overcome market volatility.
Source: Al Madina Newspaper