Saudi Arabia – SAMA considers halving insurance prices
Friday, 08 26 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Agency “SAMA” considers suspending the electronic services of insurance companies due to the delays in settling the rights of customers in motor insurance. The Chairman of the Transport Committee at the Council of Chambers Mr. Saeed Al Bassami told “Al Watan” that there is a studied option to suspend the services of motor insurance companies that do not settle claims promptly and control the number of irregularities. In case the insurer fails to provide adequate service, electronic services will be suspended and then the company will be suspended officially. This was said further to a meeting between the council of chambers and the Saudi Arabian Monetary Agency that addressed the disadvantages of motor insurance.
Among the suggestions considered by SAMA according to Mr. Al Bassami there is a proposal to continue coverage in case ownership of the vehicle changes until expiry of the insurance contract, clarifying that SAMA understood the negative factor of the insurance market in the course of a series of meeting with the council of Saudi chamber and businessmen in order to solve the problem of insurance price increases and bring them back to regional levels, confirming that inflation did exceed five times the regional average and indicating that there is a study that suggests setting motor insurance prices at half the current levels.
Source: Al Watan