Insurance

The regulatory intervention that followed intense price competition in 2013 has enabled Saudi Arabia’s insurance market to return to a trajectory of sustainable growth over the course of 2014. Competition in the sector is still stiff, however, with 35 insurance and re-insurance companies in operation as of December 2014. In 2006 the authorities enacted the Health Insurance Law, which initially required all expatriates working in the Kingdom to have private insurance and in early 2011 was extended to cover all private employees. Meanwhile, the cooperative insurance model, a variation on sharia-compliant takaful insurance, continues to grow in the Kingdom, and in 2014 Saudi Arabia accounted for an estimated 48% of global takaful contributions. Elsewhere, local players can expect to benefit from new protocols and regulations that will enable domestic insurers to compete for upcoming mega-projects in the future. This chapter contains an interview with Ali Al Ayed, General Director, Insurance Control Department, Saudi Arabian Monetary Agency (SAMA).