Experts and actuaries computing the cost of life assurance in the Kingdom indicated that the life insurance premiums in Saudi Arabia reached a total of SR250 million and criticized the Saudi society for having more consumers than savers, Al-Hayat reported.
The head of the Jeddah Chamber of Commerce and Industry Insurance Committee Khaldoun Barakat said the insurance industry in the Kingdom has an annual income of SR7 billion.
“The Saudi people were not very receptive to the idea of insurance when it was first introduced to this society. The fact that Saudis today spend more than SR250 million in premiums on life insurance is a sign that more and more Saudis are insured,” said Barakat.
He added life insurance premiums are not fixed and they vary depending on each person’s life conditions.
“The ratio of the insurance industry’s income to the population rate in Saudi Arabia is still very low. In many countries, the insurance industry is one of the main contributing industries to the countries’ economy,” said Barakat.
Shoura Council member Fahd Al-Enizi said the number of Saudi citizens who are insured is still very low.
“We need to raise awareness about life insurance in the Saudi society. Saudis need to understand the benefits they get when they are insured. We also need to found our own life insurance policies according to our Shariah,” said Al-Enizi.
He added once people see how getting a life insurance that conforms to Shariah laws will benefit them, Saudi Arabia will have one of the best life insurance policies in the world.
“The Saudi people are predominantly consumers who need to learn how to save money. Life insurance policies will help them consume more wisely. Life insurance is also good for the country as it would have more budget allocated to natural catastrophes, terrorist attack and other uncontrollable factors endangering a citizen,” said Al-Enizi.