KSA - The retention rate of insurers declined to 83% in Q1
Wednesday, 08 26 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
The overall retention rate in the insurance market in Saudi Arabia decreased to 83 percent during the first quarter of 2020, compared to 85.4 percent during the same period in the previous year 2019.
The retention rate in insurance companies shows the extent of the company’s dependence on reinsurers, and the high rate has important insurance implications, most notably the selection of the insurance operations that it accepts despite the severe competition conditions, and the availability of the company’s financial solvency in order to enable it to pay compensation for insurance operations, which Acceptance of it, and the presence of an informed insurance department capable of taking the appropriate decision in the reinsurance process.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, which was based on SAMA data and the financial statements of Saudi insurance companies, the decline in the retention rate on an annual basis is due to its decline in the two largest types, which are vehicle and health insurance.