IA reviews motor insurance pricing mechanism

Logo of Insurance Authority

Saudi Arabia's Insurance Authority (IA) said it was reviewing the motor insurance pricing mechanism to ensure insurers comply with regulatory standards and maintain fair and reasonable rates.

In a statement on X, the authority outlined six key regulatory standards governing motor insurance pricing.

Insurers must ensure that product rates are fair and not excessive, and that they comply with underwriting rules so rates do not fall below technically acceptable levels or result in losses for the company.

Rates must also be based on sound actuarial principles and underwriting rules, the authority said.

In addition, pricing must be supported by reliable data and experience. Insurers may not rely solely on prices charged by other companies and must provide the authority with the criteria used to determine their prices.