Magazine date:
Dec 2014 Nearly thirty insurers are fiercely competing in Saudi Arabia, a situation that exerted downward pressure on results, corporate capital, and solvency margins. Several companies have lost nearly half their capital following the succession of major disasters that recently hit the market.
Some local actors now find themselves at a turning point, compelled to clean up their portfolio in 2015 and to apply an average rate increase of 25% in motor and health classes of business.
The authorities have taken the initiative of imposing, among others, a purely actuarial approach for the calculation of reserves, provisions, and rates.