Wrong assessment of losses in Saudi Arabia
According to the supervisory authorities, the undervaluation of claims reached 8 billion SAR (2.13 billion USD) in 2016. To address this situation, the Saudi Arabian Monetary Agency (SAMA) has introduced a damage assessment method especially regarding third party liabiliy insurance.
In addition, the regulator has opened a first center of expertise in motor losses, which accounted for 77% of total claims in 2016.
The SAMA has, also, imposed tariff reductions, of up to 30% on local insurers. This new requirement came into force in April 2017.
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