Saturday 20 October 2018

Saudi insurance sector ‘offers huge opportunities’

RIYADH, May 1, 2017

The Saudi insurance market has a huge opportunity to grow with the sector contributing only 1.5 per cent to the kingdom’s GDP last year, said Governor of the Saudi Arabian Monetary Authority (Sama).

Inaugurating the 4th Saudi Insurance Symposium, organised by the Insurance General Committee on April 30 and May 1, Dr Ahmed Abdulkarim Al Kholifey said highlighted the need to raise the awareness of the importance of insurance, diversifying the services provided, promoting protection and savings insurance, increasing the number of insured vehicles and encouraging mergers and acquisitions in order to establish entities strong enough to face the challenges and achieve higher growth.

The event was participated by more than 1,100 delegates representing the local, regional and international insurance sector.

Dr Al Kholifey also drew the attention of the delegates to the growth witnessed by the insurance sector in the kingdom noting that the operating profits of the sector reached SR2,469 million in 2016, compared to SR963 million in the previous year. This indicates an improvement in the insurance portfolio management resulting in the sector achieving net profits of SR2,104 million in 2016, compared to SR810 million in 2015. Furthermore, gross written premiums exceeded SR36.85 billion in 2016, which is SR360 million higher than last year.

Dr Al Kholifey explained that Sama has issued a number of circulars aiming to provide better insurance services including the need to establish a customer care department and provide discounts for compulsory and comprehensive insurance for individuals with zero violations.

Dr Al Kholifey stressed on the importance of ensuring fairness of prices of compulsory vehicle insurance for individuals.
Abdulaziz Al-Sudais, chairman of the Insurance General Committee, said: “The symposium’s most important objectives, through which we seek to join efforts and raise the partnership level between the public and private sectors, as well as among the various insurance segments and the beneficiaries of their services, are to enrich the customer experience and provide best insurance services to customers to meet their needs and aspirations.”

He praised the pioneering role played by Sama through its recognised and honoured efforts to promulgate several laws, instructions and rules that have had a great impact on improving the services provided by insurance and reinsurance companies and self-employed companies.

Basem Odeh, chairman of the Insurance Executive Committee, stated: “Despite of its relatively young age, the insurance sector in the kingdom has made significant achievements, which were widely recognised by regional and international experts and specialists. We truly believe that what has been achieved so far is very small compared to the great potentials that can be provided by the positive economic environment stimulated by the Saudi Vision 2030, particularly the support of the non-oil private sector and its contribution to expand our economy, create job opportunities and qualify citizens.” – TradeArabia News Service

Tags: Saudi | Insurance | Sama |

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