Saudi minister affirms need for mergers as insurance sector requires strong entities

Minister of Finance Mohammed Al-Jadaan

Minister of Finance Mohammed Al-Jadaan affirmed the need for mergers, indicating that the insurance sector needs strong and large entities capable of expanding inside and outside the Kingdom and providing new services.

During the sixth Saudi Insurance Symposium held today, Sept. 28, Al-Jadaan added that the regulator, Saudi Central Bank (SAMA), as well as the government, will support and push the insurance sector for further growth in the coming period.

The insurance industry has so far not reached the ambition hoped for by the Saudi market, he stated, highlighting that the opportunities are great in the sector. 

Al-Jadaan urged international insurance firms to invest directly in the Saudi market by opening branches or through joint ventures. 

An insurance sector regulator, independent of SAMA, will be announced soon, aiming to develop the sector and facilitate compliance in the health sector and other operations. 

He indicated that the government is focusing on protection and savings (P&S) insurance, as it is cooperating with SAMA and the financial sector to develop savings products. 

There are diverse opportunities in P&S insurance products, not only for banks to provide savings products to citizens, but for insurance companies as well, the minister said. 

He stressed that savings products are still limited, while the Kingdom's Vision 2030 objectives are much higher.