AICC participates in war risks insurance pool: CEO

Ziad Alrubish, CEO of Arabia Insurance Cooperative Co. (AICC)

Ziad Alrubish, CEO of Arabia Insurance Cooperative Co. (AICC), said the company participates in the Saudi War Risks Insurance Pool for Cargo and Vessels.

The move is part of the company's efforts to support national initiatives aimed at developing the insurance sector and strengthening its capabilities in the Kingdom, Alrubish said, adding that the insurer also seeks to expand its marine insurance business.

Speaking to Argaam, the CEO said the company views its participation in the pool as a long-term strategic commitment through which it seeks to leverage its expertise and technical capabilities to help build a strong and sustainable pool.

This, in turn, will support the Saudi market’s ability to absorb and manage a larger share of risks locally based on sound underwriting and technical principles.

He explained that establishing the Saudi War Risks Insurance Pool represents an important strategic step in developing the Kingdom’s marine insurance market, particularly amid geopolitical changes and heightened risk levels across several maritime routes.

The pool will provide a structured national mechanism for managing these risks, helping increase the capacity of the Saudi insurance market and strengthening its ability to provide insurance coverage during periods of heightened risk or volatility in global reinsurance markets, he said.

Alrubish noted that the pool’s importance extends beyond the insurance sector, as it will help support the continuity of trade and supply chains, enhance the resilience of the national economy, and strengthen the Kingdom’s position as a global logistics hub.

He said the establishment of the pool represents an opportunity to develop the marine insurance business and enhance the Saudi market’s ability to manage specialized risks by pooling the capacity and technical expertise of participating companies within a structured national framework.

AICC's participation in the pool will allow it to contribute to this ecosystem and benefit from opportunities that may arise from expanding coverage and increasing the market’s capacity, the CEO added. The company views its participation from a strategic perspective linked to developing its marine insurance business and strengthening its technical expertise.

Regarding the pool’s impact on risk retention and premiums within the Kingdom, Alrubish said one of the key expected benefits is to enhance local capacity and pool the capabilities of Saudi insurance and reinsurance companies within a single framework. This would allow a larger share of premiums and risks to be retained in the Kingdom compared with handling each risk individually.

He stressed that the pool is not intended to eliminate reliance on global reinsurance markets, but rather to achieve a more balanced mix of domestic and international capacity, given that war-related marine risks can be substantial and accumulative by nature.

External reinsurance will remain an important tool for risk distribution and protecting insurers’ capital, while the pool’s added value lies in strengthening the Saudi market’s position and increasing its ability to manage risks and retain a larger share of them locally when this is technically and financially viable, he said.

Alrubish said the pool will also contribute to developing the Saudi market’s technical and insurance capabilities in one of the most specialized areas of marine insurance by pooling the expertise and capacity of participating companies and enhancing capabilities related to underwriting, pricing and specialized risk management.

He added that the pool is expected to deepen local expertise, develop technical knowledge, and strengthen the market’s ability to absorb and manage a larger share of these risks within the Kingdom, while leveraging the expertise and capacity of global reinsurance markets to achieve the optimal balance in risk distribution and support the pool’s long-term sustainability.

The success of the pool will be measured by its ability to strike a balance between maximizing local retention when technically appropriate and utilizing global markets when there is a greater need for risk distribution and knowledge transfer, the CEO said.

He added that this will protect policyholders and insurers’ capital while enhancing the long-term stability of the Saudi insurance market.