Saudi Arabia: Suspected motor fraud cases up by 20% to 26,000 since 2007
Source: Middle East Insurance Review | Sep 2019
The rate of motor fraud in the insurance sector in Saudi Arabia has risen up to 15-20%, which is higher than the global average of between 9% and 10%, according to Dr Mohammad Alsuliman, CEO of Najm Insurance Services Company.
He said there had been 26,000 suspected cases of fraud since 2017, with amounts totalling SAR245m ($65.3m), reported Al Madina. Najm is working to reduce fraud in cooperation with the General Administration of Traffic and the Saudi Arabian Monetary Authority.
Dr Alsuliman also said Najm is facing a challenge in expanding geographically: it currently covers only 38 cities. The company also aims to complete automating its systems to accelerate claims settlements.
Motor business accounts for 25% of the overall insurance sector in Saudi Arabia. The total number of cars in the kingdom is about 12m. However, only around 50% of all vehicles are insured. M
SAR1 = $0.27