Saudi Arabia's crowded insurance sector is ripe for consolidation after the central bank proposed more stringent risk-based capital requirements to bolster the insurance sector.
The Saudi insurance sector is concentrated in health and automotive, which accounted for more than 80% of gross written premiums in 2017.
Bupa Arabia, Tawuniya and Med Gulf dominate the health market, accounting for 80% of premiums in 2017, while the other 24 companies, with a combined market share of only 20%, lack scale, which may lead to consolidation, Fitch Ratings said in a recent report.
(Reporting by Saeed Azhar. Editing by Jane Merriman) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: firstname.lastname@example.org))