New policy in compulsory motor insurance and cooperative health insurance stimulates market growth

The steady performance of the Saudi economy amid the global financial downturn will further stimulate the ongoing growth trend in Saudi Arabia's insurance sector, creating the perfect backdrop for key industry players such as Buruj Cooperative Insurance Co. to consolidate their portfolio and reinforce strategic market advantages.

Insurance density in Saudi Arabia has increased by 23% from SAR358 in 2007 to SAR440 in 2008, and is again poised to achieve a healthy growth rate this year. Insurance density is defined as per capita expenditure on insurance. The Saudi insurance market has also reported a 27% growth in gross written premiums, reaching SAR10.9bn in 2008 from SAR8.6bn in 2007.

Samer Kanj, General Manager, Buruj Cooperative Insurance Co. said, "Saudi Arabia remains as our primary focus because of the immense growth potential here. Our goal is to firmly establish the Buruj brand as a premier insurance provider by delivering premium value in all our products and services in the Kingdom. Moreover, we intend to maintain our strong reputation in satisfying the security needs of individuals and businesses by helping them manage their everyday risks, recover from unpredicted events, and reach their goals and aspirations."

"Buruj will continue to strengthen its presence in Saudi Arabia's insurance market by regularly re-evaluating and consolidating its premium selection of insurance products and services. The huge population of the country offers a great opportunity to explore innovative insurance solutions to address the diverse requirements of niche markets in the country. Moreover, the favourable market conditions have also been influenced by the excellent performance of the country's economy as well as the introduction of new policies such as the compulsory motor insurance and cooperative health insurance,"

added Kanj.

Buruj Cooperative Insurance Co. will benefit from its ties with Saudi Pearl Insurance Company, a Bahraini insurance company that has extensive experience in the insurance business in Saudi Arabia, where it offers all classes of insurance products.

Saudi Pearl's parent company, Gulf Insurance Company, is a major shareholder of Buruj Cooperative Insurance Co.