Saudi Arabia – Insurance of government vehicles to boost premiums
Saturday, 12 10 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Authority finalized the law related to the insurance of governmental vehicles against third parties. I will also stipulate that insurance companies will have to cover bodily injury that affects third parties inside or outside the vehicle in addition to material damage outside the car. Moreover, Mr. Suleiman Bin Mayouf expected total insurance premiums generated to exceed SAR 60 billion in case the law is implemented in year 2017, indicating that the implementation of the law will face many challenges such as the high cost of insurance given that the vehicles are heavily used by public employees and militaries. The second challenges would be the claims administration, which assumes a competitor to “Najm”.
Bin Mayouf confirmed that the insurance sector growth reached approximately 20%. However, the growth rate could rise to 40% if insurance is extended to all government-owned vehicles in the first year of implementation.
Source: Al Riyadh