Five Saudi insurers project higher motor ins. Sales
Friday, 07 10 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
Five Saudi companies listed on the Saudi Stock Exchange (Tadawul) on Thursday announced the impact of the General Traffic Department’s recent mandate obliging all vehicle owners to carry effective motor insurance before the beginning of Dhu al-Hijjah month.
Earlier this week, the traffic department announced the completion of automated linking of motor insurance procedures in their records at the National Information Center (NIC), which will result in automated detection of violations.
The Company for Cooperative Insurance (Tawuniya) expected the aforementioned decision to reflect positively on its gross written premiums (GWPs). However, the material impact cannot be determined at the moment.
Buruj Cooperative Insurance Company also expected to generate higher GWPs, highlighting that it will provide material developments in due course.
Moreover, Solidarity Saudi Takaful Company and Gulf Union Cooperative Insurance Company projected higher sales of vehicle insurance policies, which will positively reflect on their GWPs.
Additionally, Al Etihad Cooperative Insurance Company forecasted higher GWPs starting from the third quarter (Q3) of 2020.