Saudi Arabia – Better results lead to motor insurance price decreases
Wednesday, 03 08 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
The spokesperson of insurance companies Mr. Adel Al Issa said that motor insurance prices are built on the recommendations made by the actuary. Therefore, if the results of the motor portfolio of an insurance company improve there will be stability and further price increases will stop. However, he did not expect a specific number for motor insurance contracts in case the results of insurance companies improve.
Mr. Al Issa said that the losses of the motor portfolio of insurance companies reached 97% in year 2013 excluding administrative expenses. They decreased to 90% in year 2014 whereas they reached 89% in year 2015. He expects that insurers will try to find an equilibrium with a profit margin so that motor insurance prices stabilize in the Saudi market. He also showed that the losses of insurance companies in the motor portfolio decreased to a large extent last year compared to year 2015.
Source: Al Riyadh