KSA - Limited effects of the Corona pandemic on the ins. Sector
Monday, 06 01 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Financial Stability Report for the year 2020 issued by the Saudi Arabian Monetary Agency recently revealed that the effects of the virus outbreak on insurance companies are much lower than international companies, due to the government’s interference and ensuring that it treats the entire cases of the emerging coronavirus virus for the general population, as an essential factor that has reduced the sector’s heavy costs.
According to experts who assured “Asharq Al-Awsat” that the next stage is the golden opportunity for insurance companies to restructure them and enter direct alliances to ensure their continuity after strengthening their financial positions in the wake of the pandemic.
34 insurance companies licensed to engage in insurance and reinsurance activities operate in Saudi Arabia, in addition to 30 free professions licensed to support insurance services, 88 insurance brokerage firms and 70 agency companies, which exceeds the need for the Saudi market to cover all insurance services.
The Financial Stability Report for the year 2020 issued by the Saudi Arabian Monetary Agency, the day before yesterday, pointed out that 97 per cent of the insurance market depends on general and health insurance coverage with investments concentrated in short-term highly liquid assets, in the form of cash and deposits of about 50 to 70 per cent Fixed income securities make up between 20 to 25 percent.