RIYADH, 17 December 2007 -- Tawuniya, the leading insurance company in Saudi Arabia, has signed deals with 10 local and international companies to provide insurance in the energy sector, recently undertaking projects in the Kingdom, the company announced yesterday.
The company's insurance scheme will cover all the projects signed by the 10 companies at a total of SR180 billion.
"We received this year 200 million in installments for carrying out the insurance coverage," a company spokesperson told Arab News. The amount will cover total insurance to the projects carried out in the energy sector in the next three years, as per the contracts signed.
According to Fahd Al-Hisni, deputy executive director for properties and accidents, the signing contracts is a continuation of other deals signed by the insurance company in 2006 to provide energy insurance.
"The contracts signed are considered to be the first of its kind for a Saudi company to provide energy insurance to companies in Saudi Arabia with the collaboration of international energy market," Al-Hisni said.
Commenting on the insurance scheme, he said that it would cover insurance in the mega projects currently being established in the Kingdom such as power plants, water desalination plants, as well as plants that manufacture or produce gas, oil, and minerals. In addition, it will cover infrastructure, pipelines, and equipment used by these companies in their projects.
The company official mentioned that the last budget announced by the Council of Ministers approved many mega-projects all over the Kingdom which require insurance coverage at a large scale.
"Al-Tawuniya's financial capabilities and experience to compensate damage or loss is the most suitable to cover these projects," he added.
In 2006, insurance in the energy sector in the Saudi market constituted 2.5 percent of the total insurance market share. The percentage is expected to grow by 5 percent next year with mega projects undertaken by the Saudi government in the educational and industrial sectors.
Tawuniya, formerly known as NCCI, launched its new logo with a new identity last October to reinforce its brand image as a market leader of the insurance sector, where 18 insurance companies are already operating and 24 more waiting in the wings.
The company has been providing citizens and residents in the Kingdom since its establishment in 1986 with health insurance, car insurance, travel insurance, natural disaster insurance, life insurance, and recently insurance on households.
The company, established with a capital of over SR500 million, is listed in the Saudi Stock Exchange.
By Raid Qusti
© Arab News 2007
