Saudi Vision 2030 is an inclusive plan for reforming Saudi Arabia’s overall economic structure, aiming to develop various industries and sectors, and drive the economy forward. It is therefore expected that Saudi Vision 2030 will lead to opportunities in the insurance sector.
Mr. Abdullah Altowaijri, Director General, Insurance Control Department, Saudi Arabian Monetary Authority (SAMA) who will keynote the 15th Annual World Takaful & Insuretech Conference (April 6, 2020-Dubai) will discuss insurance sector growth under Saudi Vision 2030, and opportunities & challenges in the Saudi Arabian Insurance Market
In order to buffer the fluctuations on Tadawul precipitated by global and regional economic headwinds, the stock exchange is aiming for (or attracting) more listing of international insurance brokers.
Accordingly, SAMA has compelled insurance companies to review and restructure their businesses and ultimately undergo M&A. SAMA has suspended several insurance companies from issuing new insurance contracts in the past few months until they increase their capital and meet the solvency requirements.
Although insurers still prefer to raise the capital instead of undergoing mergers or acquisitions to support financial solvency, the M&A scenario provides ideal strategic solutions for insurance companies to overcome financial problems and establish strong entities that enable them to compete and make profits, especially if the two companies have comparative advantages that vary from each other.