By Shujaath Ahmed Khan
The increase in oil prices with the price crossing the magic figure of US $ 100 coupled with increase in the population of the Saudi Arabia and GCC has contributed to the growth in the business activity. Lots of contruction activity is taking place throughout the Gulf countries, which has contributed to growth in Insurance premiums. The compulsory Medical and Motor insurances has also fuelled the increase in the volume of premiums. Today we find that Insurance Industry is gearing into cope with the flooding business enquiries and some are entering into new forays.
The compulsory Medical Insurance in Saudi Arabia is in second phase and expected the enter any time into third phase. Currently it is essential that an insurance company uploads the Website with the member's list inorder to process Iqama renewal and any amendments to Iqama. Whereas Motor certificates are being insisted during registration of Motor vehicles and at the time of transfer of vehicles.
Registration of the Companies is still in progress and the companies not registered in the Kingdom of Saudi Arabia will have to stop dealing in insurance activity. New companies which have registered with huge capital base are now finding it difficult to get the business. There is a reduction in Medical premium and companies are trying to enter into Personal Lines Segment. This will further soften the market. The more competition will give rise to low premium rates and reduction in profit margins. CCHI is expected to take hard action on defaulting companies. Customers are still working hard to get the right deals for the money spent.
The compulsory Medical Insurance in Saudi Arabia is in second phase and expected the enter any time into third phase. Currently it is essential that an insurance company uploads the Website with the member's list inorder to process Iqama renewal and any amendments to Iqama. Whereas Motor certificates are being insisted during registration of Motor vehicles and at the time of transfer of vehicles.
Registration of the Companies is still in progress and the companies not registered in the Kingdom of Saudi Arabia will have to stop dealing in insurance activity. New companies which have registered with huge capital base are now finding it difficult to get the business. There is a reduction in Medical premium and companies are trying to enter into Personal Lines Segment. This will further soften the market. The more competition will give rise to low premium rates and reduction in profit margins. CCHI is expected to take hard action on defaulting companies. Customers are still working hard to get the right deals for the money spent.
