Saudi Re conducts seminar on 'Saudi P&C Market: Trends and Developments'

The seminar provided the industry professionals with an update of the key trends of the insurance and reinsurance market in Saudi Arabia. Trend analyses of pricing of primary insurance in the Saudi market were presented during the seminar, and noted that Property and Engineering rates have undergone a decrease by 10% in 2011 compared to the previous year.

It was also highlighted that the current pricing trend might affect the performance of the insurance portfolios negatively which subsequently would make it difficult for insurance companies to obtain first class reinsurance coverage.

Further, the speakers stressed that applying technical factors in pricing in addition to the use of actuarial studies are very significant in arriving at a technically sound insurance rate.

Linked to this, the seminar addressed the design of optimal reinsurance coverage as well as issues relating to managing exposure and setting retention levels.

Mr. Fahad Al-Hesni, MD-CEO of Saudi Re, commented, "The Saudi Insurance Market grew by 12.8% in 2011, exceeding SR18.5bn compared to SR16.4bn in the previous year, while retention level exceeded 72%."

He also added, "Despite the expansion we are undergoing in markets in Asia and Africa, KSA remains the core market for Saudi Re. We have invested heavily in developing our technical capabilities to offer first class services to our clients, and pursuing our business strategy, Saudi Re is to provide Lead terms for January 2013 renewals in proportional, non-proportional and Life reinsurance treaties."