Talks over compulsory insurance covers
Saudi insurers have started talks with the regulatory authorities for the introduction of new compulsory insurance covers. So far, only health and motor third party liability are mandatory. Combined, both classes of business account for roughly 80% of the market shares.
Alone, health insurance posts a turnover of 36.4 billion SAR (9.7 billion USD), that is, 52% of the underwritings. Motor insurance accounts for 29% of the market shares. Yet, these classes of business are regularly loss-making. Insurers are, therefore, attempting to make other insurance categories compulsory. Talks pertain to fire insurance and that of the sites deemed risky.
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