2007 – Saudi Arabian Insurance update

By Shujaath Ahmed Khan

First Quarter
In the first quarter we saw the change from driving licence insurance to vehicle Third Party Insurance, it was implemented effective 1st of April. There were grapevine about the implementation of Compulsory fire insurance. The number of covered members under Medical insurance increased dramatically. The country plans to establish a national cooperative fund to provide free health insurance coverage to all of its nationals after privatizing state-owned hospitals according to Health Ministry. The Takaful insurance is expected to grow tremendously.

Al-Malath Insurance got the first licence and went on IPO. Where as Saudi Re-insurance Company (Saudi Re), became the first re-insurance Company in the Kingdom. MedGulf (Insurance and Re-insurance) enters share Market. Interserve Marsh holds marine training in Riyadh. Shares of MedGulf over-subscribed four time. The Saudi United Co-operative Insurance Company ( Amity) launched its IPO.
SAAB Takafull launches its IPO. Saudi United Co-operative Insurance Co. ( Wala'a Insurance) offered its IPO through Banque Saudi Fransi, Riyad Bank and Al-Rajhi Bank. Arabian shield Co-operative Insurance Company offered their Shares for the IPO and it was oversubscribed by 4.5 times.

Second Quarter
Malath Cooperative Insurance and Reinsurance Company obtained its commercial registration from the Ministry of Commerce and Industry. Mediterranean & Gulf Insurance and Reinsurance Company (MedGulf) began trading on the Saudi stock market it is the third of the thirteenth Company approved by Capital Market Authority.
Sanad for Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company, Saudi Indian Cooperative Insurance Company, Gulf Union Cooperative Insurance Company, Al-Ahli Takaful, Allied Cooperative Insurance Group and Al-Ahlia Cooperative Insurance offered it s IPO. Most of the companies were oversubscribed by over 300% 1000%. Prudential of Britain enters into tie-up with Bank AlJazira. The shares of almost all the insurance companies were showed an upward trend

Health insurance become compulsory for 500 plus expatriate employees. At the time of issue of and renewal of Iqama's (residence permits) it was essential to get the employee name listed in the website of CCHI.

Third Quarter
Shares in Saudi United Cooperative Insurance Company (Walaa Insurance), Gulf Union Cooperative Insurance Company, Sanad Insurance & Reinsurance Cooperative Company Saudi Fransi Cooperative Insurance Company (Allianz SF), Allied Cooperative Insurance Group (ACIG), Arabian Shield Cooperative Insurance Company (ASCIC), Saudi Indian Company for Cooperative Insurance and Alahli Takaful Company (ATC) soared at a higher levels. Gulf General Insurance Company (GGI) enters the Market with their IPO. Solidarity, one of the largest Takaful Companies in the world, signed a memorandum of understanding with Ahad Insurance Company based in Saudi Arabia to establish an insurance Company. BUPA, one of the Medical Insurance Provider got approval to operate as licensed Co-operative Health care Insurance Company. IPO is expected early next year.

Fourth Quarter
Al-Saqr Company for Cooperative Insurance launched their IPO. NCCI, the largest Insurer in Saudi Arabia launched its new Logo and new name in a well organized Ceremony and changed its name from NCCI to Tawuniya. 2nd Saudi Insurance Summit was held in Jeddah. The three day summit was chaired by Ali Al-Subaihin, CEO of Tawuniya. A new insurance brokerage service was launched. It is SABB Insurance Services Limited (SISL), it is a joint venture of SABB and HSBC Insurance Brokers. Medical Malpractice insurance becomes compulsory.

The Saudi Electricity Company (SEC) has signed a three-year medical insurance contract with Tawuniya involving a total premium of SR56 million, or about SR19 million annually. Tawuniya, the leading insurance company in Saudi Arabia, had signed deals with 10 local and international companies to provide insurance in the energy sector, recently undertaking projects in the Kingdom.

Prices of more than 1,400 types of medicines in the kingdom is expected to be reduced by 3.5% to 27%. A major vehicular accident due to fog takes 4 lives and scores were injured in Eastern province. 28 persons were killed and 10 others insjured yesersday during a fire after a gas pipeline explosion in Eastern Province per Saudi Aramco.