Online insurance monitoring to balance auto market, boost competitiveness: Official

Adel Al-Issa, spokesman for the insurance sector

Saudi Arabia’s online monitoring of vehicle insurance violations will augment turnout for the auto insurance product and boost the number of insured cars in the market, therefore creating market balance, Al Ekhbariya reported, citing Adel Al-Issa, official spokesperson for the Saudi insurance sector.

The number of insured cars in the Kingdom accounted for 50% of the market, indicating a market imbalance compared to the global markets, said Al-Issa.

The decision to e-monitor vehicle insurance violations will enhance the competitiveness of insurance companies due to the growing demand for auto insurance policies. Therefore, insurers will be able to regulate prices and generate more profit.

There are nearly 27 insurance companies in the Kingdom and their market shares are seen to grow further on the implementation of the online monitoring decision, he noted.

The online monitoring of vehicle insurance violations commenced on Oct. 1.

The General Department of Traffic said that the automated online monitoring will apply to all vehicles to ascertain violators, data compiled with Argaam showed.