JEDDAH, 10 June 2004 — The First Saudi Insurance Forum, which concluded here yesterday, has raised hope and interest among the industry players who feel that the new regulations for the sector will go to streamline the market, set high and qualitative standards and raise professionalism. They said that the topics discussed at the conference had elucidated many aspects of the new regime.
Raju T. Thomas, insurance analyst, Saudi Electricity Company, Riyadh, one of the biggest in the Kingdom with almost SR60 billion of assets insured, said the new setup, undertaken by Saudi Arabian Monetary Agency (SAMA) was an encouraging step.
“We were a little bit worried in the absence of an insurance regulatory board in Saudi Arabia. We feel that our interests are protected. When insurance companies are registered in Saudi Arabia we will have more confidence in dealing with them. This is a very good step,” he added.
Nizamuddin Siddiqui, general manager, Arabian Inspection & Survey Co. Ltd., said that after nearly 15 years there was light at the end of the tunnel.
“For surveyors and loss adjustors these are very important regulations and have put minimum standards for the sector. These will go to clean up the market and create a very healthy atmosphere in the industry,” he added.
He said the Forum had been helpful in clarifying a lot of points, doubts, and confusion. “It is not possible to remove all doubts 100 percent immediately. It will be achieved gradually and a first step has been taken,” he stressed.
Randa Abousleiman Baladi, of the Abousleiman & Partners Law Offices, Beirut, which acts as legal counsels for one of the major insurance companies in Saudi Arabia, said the Forum was very important as it clarified various points, namely, in obtaining the license and most importantly how to go into individual public offering of the shares.
“There are some gray areas in the laws and we hope to get some clarifications gradually as a result of this conference,” she said, and added, “the regulation of the insurance market is very important in itself but as far as the growth is concerned the regulated market will definitely end up growing in the long run but to predict the final number is tough.”
Jamal A. Dabbagh, member of the board, Dabbagh Group, said he hoped the conference would bring more progress to the insurance industry.
The Forum acted as a platform for business leaders to meet and discuss industry matters and comply with the new Saudi Arabian insurance regulations.
As the role of insurance in Saudi Arabia and the Middle East gains greater acceptance and insurance markets move progressively toward greater regulation, there will be an increased need to protect the interests of local insurance consumers.
And in today’s global economy the needs of the clients have to be met in a professional and timely way across the spectrum of insurance services. Events such as 9/11 and the increasing incidence of natural catastrophes had contributed to the hardening of the insurance market, particularly in the class of property with premiums rising consistently.
The best cover and price can be possible only with commitment, professionalism and regularization of the industry.
“The Forum has been an eye-opener for people in the insurance industry. There have been experts from Europe and the Middle East throwing light on various aspects of the effects and meaning of the new regulations,” said Dharam Kapoor, general manager, Impact Proximity.
“The government’s new legislation will increase the number of people with health insurance from 800,000 to five million,” said Wassim Khashoggi, CEO of Waseel, an application service provider.
“Any healthcare business not prepared will be paralyzed by paperwork,” he said and added, that the conference had proved fruitful.
