Some statistics indicated that insurance spending in the Kingdom of Saudi Arabia increased during the first half of 2016 when the increase reached 0.7%. These statistics indicated that there is a slowdown in growth in the first half of this year compared to growth during the same period in the past five years.
Despite the decline in some insurance sectors, such as health insurance, with a decrease of 33 points and a decrease of 14% in general insurance premiums, 25 companies out of 34 companies achieved profits and 8 companies suffered losses in varying proportions.
The report also indicates a 10% increase in vehicle insurance premiums due to an increase in the value of insurance policy prices and not due to an increase in the number of policies.
It is worth noting that the general insurance mentioned in the report of the Monetary Agency includes 7 activities, which are energy insurance, engineering insurance, accident insurance, property and fire insurance, marine insurance and vehicle insurance.
According to Al-Madina newspaper, Sami Al-Ali, an insurance expert, said that some companies must be merged to limit their losses and not liquidate any of the companies so that it does not affect the economic classification of the insurance sector, and that the sector has to balance and restructure insurance premiums and increase awareness of insurance and its concepts.