RIYADH, 15 March 2004 — More than 60 smaller insurance companies are contemplating a merger to survive the Kingdom’s new strict regulations for the business. The new regulations require insurers to register locally under the control of SAMA, and for the first time insurers will be required to have substantial capital reserves. So far 80 to 90 insurance companies operate in a largely unregulated market. Sources expect the market to grow to SR24 billion after the new health insurance law for expatriates kicks in.