Insurance claims in Saudi Arabia have surged to its highest ever record with an increase of 10 percent in 2016, while total insurance premiums, during the same year, have witnessed a slight increase by one percent.
According to al-Eqtisadiah newspaper, insurance claims – a formal request to an insurance company asking for payment based on terms of the insurance policy – totaled ($6.32 bln) SR 23.7 bln, the highest in the kingdom’s history, which is equivalent to 65 percent of total premiums in 2016. Premium is the amount of money that an individual or business pay for an insurance police.
According to the financial statements collated from insurance companies, the vehicles sector has registered the highest percentage of claims, 77 percent versus other sectors’ claims, which ranged between four to 65 percent.
Insurance companies have been strained by exacerbated claims according to Saudi Arabia’s Estimators Committee, which is currently working to introduce a more modernized evaluating technique.
Insurance claims in Saudi Arabia at an all-time high