Saudi Arabia: Motor insurers to localise almost 100% by early July
Source: Middle East Insurance Review | Mar 2017
The Saudi Arabian Monetary Authority (SAMA) has ordered insurers to ensure 100% Saudisation in several areas of operations in motor insurance by 2 July 2017, said media reports.
Saudisation should be applied to posts related to auto insurance claims, customer services, customer complaints, and other administrative functions, according to Saudi Press Agency citing a SAMA directive.
Insurers have to provide the Authority with monthly reports on developments in localising their work force. Companies are also required to provide training to Saudi employees.
SAMA said that regulatory measures will be taken against companies that fail to comply with these directives.
Saudi Arabia faces high local unemployment and a heavy dependence on foreign manpower. More locals are seeking jobs in the private sector as the public sector has frozen recruitment in the wake of a fiscal deficit brought about by the decline in oil price. The goal of Saudisation is to give more job opportunities to Saudis in different areas of the economy. However, many employers are reluctant to hire Saudis because they have to pay them more than they pay expatriate employees, many of whom are from more populous countries like the Philippines and India.