Saudi Arabia – SAMA commissions consultant to assess motor insurance
Saturday, 10 08 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
An informed source told “Al Eqtisadiah” that the Saudi Arabian Monetary Agency “SAMA” commissioned an external consulting company in order to review the motor insurance prices, which rose excessively in the latest period.
The anonymous source said that the results of the consulting study were not published yet by SAMA, indicating that the choice of the consulting firm guarantees the objectivity of the study.
Furthermore, Mr. Adel Issa the spokesperson of insurance companies said that insurance prices are high but not excessive adding that “we as companies do not seek to raise prices, which come as a result of many factors”.
He added that one of the most important reasons for raising insurance prices is the increase in the number of accidents and their related costs, the adopting the unified policy which raised blood money compensation from SAR 100 thousand to SAR 300 thousand. He noted additionally that more than 50% of vehicles in the Kingdom are uninsured, so this factor also raises the cost borne by insurance companies.
Source: Al Eqtisadiah