Magazine date:
Jun 2014 AM Best expects a slowing growth of Saudi insurers' turnover in 2014. The increase of premiums in recent years has been achieved through the mandatory coverage in motor and health insurance. According to the rating agency, inadequate pricing and a lack of reserves in these two classes of business are at the origin of losses in 2013. Companies should review their pricing policy and actuarial approach.
If a significant adjustment was noted in 2013, it is expected to continue at a moderate pace in 2014, hence a slowdown in growth. Saudi Arabia should nevertheless become the most important market in the region within five years.