Saudi Arabia: Regulator bars 7 firms from mandatory auto insurance
Source: Middle East Insurance Review | Oct 2017
The Saudi Arabian Monetary Authority (SAMA) has banned three insurers and four insurance agencies from issuing, renewing or selling compulsory vehicle insurance policies.
The companies are Arabian Shield Cooperative Insurance, Saudi-Indian Company for Cooperative Insurance, Malath Cooperative Insurance Reinsurance, Ajyad Al-Khaleej Insurance, First Insurance, Al-Takaful Saudi Insurance Agents and Wattad Insurance, according to local media reports.
The regulator said it recorded serious violations committed by these companies in procedures related to the selling of compulsory vehicle insurance. The violations have led to disruptions in fair pricing and market competition, and irregular practices on the part of unauthorised parties, it added.
SAMA previously suspended the work of these companies for serious violations regarding claim settlements and complaints from customers.
The authority said it would not lift the ban on these companies until they commit to regulatory standards that ensure the rights of the insured and beneficiaries of insurance coverage.
SAMA added that it would take other regulatory measures against companies that continue to fail to meet the standards. M