Saudi Arabia – Insurers expand cover exclusions
Friday, 07 21 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
Some insurance companies treat risks differently. Instead of studying risk actuarially and pricing it adequately, insurers avert the risk by expanding cover exclusions according to an expert of the sector. He said that losses exceeded collected premiums noting that price competition also increased at the expense of sound underwriting. This situation decreases the quality of service provided especially the prompt payment of claims when the risk materializes.
The expert said that insurers are expanding their exclusions as safety measures are not respected at warehouses noting that exclusions are often linked to the increased risks of realizing losses especially if retention is high.
Source: Al Riyadh Newspaper