A merger of Saudi insurance companies should preferably involve more than two insurers, Mr Adel Al-Issa, spokesman for insurance companies, has said.
The goal is to create a stronger and larger entity, and also fast track the consolidation process, he told CNBC Arabia. “Mergers are a strategic imperative”, he said.
Companies are facing fierce competition, while compulsory insurance payments and investment losses are among key market challenges.
However, insurers are seeing delays in consolidation because of internal decisions to be made by their boards of directors.