Saudi insurance companies are racing to launch electronic platforms that allow customers easier access to insurance products and to compare them.
A government report on financial stability in Saudi Arabia, issued recently, says that it is expected that the insurance market will transform radically during the coming period, with widespread adoption of technology, which will facilitate customer access and alleviate obstacles to overall supply and demand of products, reported Asharq Al-Awsat.
The market will witness more partnerships between technology companies and insurance companies to develop their operations by providing digital solutions related to the Internet of Things, while the main challenge for these companies is financial stability and customer protection during the transformation process.
The Saudi Arabian Monetary Authority encourages technology-supported financial products and services with various programmes and initiatives, including a "legislative experimental environment", which is a great opportunity for local and international companies wishing to test their insurance technology solutions in an actual environment, with a view to launching them in the Saudi market in the future.
SAMA has also issued new rules for electronic insurance intermediation in Saudi Arabia, to extend reach and facilitate access to insurance coverage, while promoting competition and product development in a transparent and efficient manner.
Dr Fahd Al-Anzi, a member of the Saudi Shura Council and an expert in the field of insurance, said that the insurance sector has benefited from IT in terms of risk management, as well as calculating risks and premiums.
He added that technology will contribute to monitoring insurance companies in various aspects, including ensuring accuracy, eliminating errors that can be caused by the human factor, and ways of managing risk. Technology also helps combat insurance fraud, through smart programs.