S&P Says Saudi Insurance Market Able to Meet Regulatory Challenges

Standard & Poor’s Ratings Services has said that it considers the Saudi insurance market to possess the “inherent strengths,” which will allow it to “ride out” forthcoming regulatory changes. The report -”Strengths, Weaknesses, Opportunities, And Threats As Insurers In Saudi Arabia Come To Terms With New Regulations” – indicates that the far reaching regulations will fundamentally alter the insurance market in the Kingdom.

“New regulations are due to come fully into force in 2008, which will affect all insurers and reinsurers writing business in Saudi Arabia,” explained S&P credit analyst David Anthony. “Volatile client relationships and tariffs will characterize the scene as newly licensed players enter the market, and as old, unauthorized entities are finally forced to cease operations.”

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Source: Standard & Poor’s