Small insurance companies in Saudi Arabia are planning to integrate into a larger entity

The Saudi Arabian Monetary Agency (SAMA) for Its vision for the future of micro and small insurance companies which can not compete with giant companies, Where analysts expect that these small companies will merge together to become a single considerable  entity able to compete with the mega-entities.

This has come in the context of a report prepared by SAMA after the Saudi bourse Suspension of Trading on the shares of the company (Sanad for Cooperative Insurance) Inc. and ( Weqaya for protection insurance) because of the worsening of their losses. Although the insurance sector in the stock market has achieved an increase of 1.8, but this increase was limited to large insurance companies, and  small insurance companies have made losses.

Mohammed Jadaan chairman of the financial management of the market in Saudi Arabia, said that the Kingdom is witnessing a tremendous development in the field of insurance, and insurance companies in the recent period have become achieved steady growth promising, which has encouraged many to fight investment experience in the field of insurance, hence  the number of small insurance companies that can not compete with giant entities increased, he added, these small insurance companies must plan for integration if they are willing to get a share of the market.