Saudi insurance market faces consolidation
Tuesday, 11 21 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
Tightening solvency requirements are likely to drive consolidation in the Saudi Arabian insurance market in the next few years as weaker companies merge with stronger rivals, according to a Fitch Ratings report.
Regulatory reform could also help fuel growth, particularly in motor insurance.
Fitch believes that the Saudi insurance market is already subject to strong regulatory oversight, as demonstrated by conservative rules on investments and the regulator's willingness to suspend firms from issuing new policies when deficiencies are identified. Analysts expect capital requirements to be raised further and rules on internal risk controls to be tightened in the coming years.
Source: Intelligent Insurer