Al Sagr Insurance CEO says ‘worst is behind’, motor insurance rise to 53% of total portfolio sales

Sarran Abusaq, CEO of Al Sagr Insurance

Al Sagr Cooperative Insurance Co. overcame the worst losses, backed by its transformation plan and corrective actions since the beginning of Q3 2020, CEO Sarran Abusaq told Argaam in a telephone interview.

Al Sagr worked on a comprehensive and administrative restructuring process to review the performance of its insurance portfolios and define the main reasons behind their negative performance.

The company also aimed at developing detailed growth plans, Abusaq said, expecting better results, especially in the medical insurance portfolio during the fourth quarter of 2021.

The medical insurance portfolio incurred massive losses in the last two years, with accumulated losses of over SAR 163 million, or 41% of capital, since the beginning of 2019. Therefore, Al Sagr reshaped the subscription strategy in the medical industry, as it will not only focus on the medical insurance of small and medium-sized enterprises (SMEs), but also on large companies.

The Saudi-listed insurer submitted an application to the Saudi Central Bank (SAMA) to approve new insurance products to fulfill the needs of major companies and insurance brokers, which will boost its sales base through direct selling challenges such as the points of sale, agents, or e-channels, Abusaq explained.

From the fourth quarter of 2020 to Q1 2021, Al Sagr started to see better sales in the motor segment, whose contribution to the total portfolio sales rose to 53% from 15% previously, while the medical segment’s contribution dropped to 41% from over 80% previously.

Al Sagr’s gives priority to developing general insurance sales, which account for 5% of the total portfolio, and raising its contribution to revenue, Abusaq affirmed.

The motor business’ sales jumped 27% after automating a huge part of the company’s motor activities, the automatic linkage decision amid plans for opening e-channels, the CEO added.

He expected an increase in sales over the coming period and better performance of the insurance sector as the Saudi economy will resume growth after its gradual recovery from the COVID-19 pandemic.