News Middle East29 Jun 2020

Saudi Arabia:Motor fraud estimated to have cost insurers US$320m in 2019

29 Jun 2020

The insurance sector in Saudi Arabia suffered motor fraud involving an estimated total of SAR1.2bn ($320m) last year, according to industry players.

The insurance sector in Saudi Arabia suffered motor fraud involving an estimated total of SAR1.2bn ($320m) last year, according to industry players.

Insurance expert Dr Fahd Al-Anazi told Al Riyadh that total motor insurance claims amounted to around SAR5.96bn last year, and the fraud rate was about 20%.

He said that as insurance companies would take fraud losses into account and increase motor premiums, and thus it would be in everyone's interest to combat fraud.

Fraud is one of the challenges facing the insurance sector and the methods of fraud change. This means that insurance companies are constantly working to develop their systems to reduce fraud. This also reinforces the importance of having laws criminalising fraud so as to curb its incidence.

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