Saudi Arabia – Motor insurance is costly
Tuesday, 05 09 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Standard & Poor’s global rating agency is optimistic about the future of the insurance sector in the Kingdom. It expects a 5% growth in insurance premiums in 2017 and an even stronger growth in 2018 of 10% to 15%.
About motor insurance Mr. David Anthony manager at “S&P Global rating services” said that compulsory third party motor insurance is very expensive in the Kingdom compared to similar coverage in other Gulf Cooperation Countries. He said that there are many reasons for this such that the fact that 55% of total vehicles used in the kingdom numbering 12,000 cars are uninsured compared to only an uninsured percentage of 10% in neighboring countries. Therefore, 45% of the drivers who buy an appropriate insurance policy do not only pay for the accidents that they cause but they do also pay for the accidents caused by the remaining 55% uninsured drivers who do not have an insurance policy.