Saudi Arabia – Companies might merge or exit insurance market
Monday, 09 05 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
Insurance sector consultants in KSA revealed that they expect at least 6 companies to exit the market during year 2017 if they cannot absorb the accumulated losses of past years. However, a recent economic report reflected an optimistic outlook for the insurance sector in the Kingdom and expected a long-term growth potential. The report described it as a positive investment environment for future years even though it recognizes that the performance of companies in the sector decreased.
According to “Al Madina” newspaper the insurance and reinsurance economic expert Dr. Adham Jad said: There is a high probability for at least 6 companies to exit the sector during the next two years or to merge. He excluded the possibility for these companies to transform their business activities into another business since their license is related only to insurance activity.