The Saudi insurance sector grows 2.3%, with total premiums of $ 10.3 billion
Most wanted energy and accident coverage policies in 2020
Thursday – 24 Ramadan 1442 AH – 06 May 2021 AD
Positive results for the insurance sector despite the conditions it faced during the Corona pandemic (Saudi Central Bank)
Riyadh: «Middle East Online»
This came in the fourteenth annual report on the insurance market in the Kingdom, issued by the Central Bank of Saudi Arabia, highlighting the sector’s developments and results during the year 2020. In addition to its financial results, and its contribution to the gross domestic product.
The report showed an increase in the insurance sector’s depth of GDP in 2020, to 1.5 percent, compared to 1.3 percent in 2019, and the overall loss rate of the sector improved positively, reaching 77.5 percent.
And he indicated that the net profit of the insurance sector (after zakat and tax) increased by 61.1 percent during 2020 compared to the previous year, in addition to the increase in the return on assets and the return on shareholders’ rights, indicating the high percentage of Emiratisation in insurance companies, which reached 75 in the year 2020 AD compared to 74% in 2019.
These positive results come despite the circumstances that the sector faced during the period of the Coronavirus pandemic, in which the sector continued to operate effectively by preserving the safety of all dealers and facilitating their insurance transactions, in addition to its initiative to extend vehicle insurance policies for individuals for a period of two months without the insured incurring any responsibility. Additional costs electronically.
This report highlights the main organizational and other developments during the past year, including the issuance of new actuarial business controls, electronic insurance brokerage business rules, the model form of the hidden defect insurance policy, comprehensive insurance controls on vehicles leased out financially to individuals, and continued progress in applying Transition to International Financial Reporting Standard 17 (IFRS17), as well as increase in mergers and acquisitions activity.
The aforementioned developments are positive signs for the insurance sector, and are consistent with the efforts of the Central Bank of Saudi Arabia in developing the sector and increasing its contribution further to the economy, with a focus on protecting insurance policy holders and fair pricing of products.