SAMA approves postal parcel insurance product

Logo of Saudi Central Bank

The Saudi Central Bank (SAMA) announced approving the postal parcel insurance product for a number of insurance companies.

The new product will cover the risks that may take place during the shipping of these parcels, according to a statement by SAMA.

The step underscores the central bank’s efforts to enhance the insurance industry via launching new innovative products, in line with the objectives of the Financial Sector Development Program.

In addition, the new product echoes the Communications and Information Technology Commission’s (CITC) endeavors to boost the industry, improve the clientele experience, enhance the quality of services, offer compensations in case of loss, or damage, and augment the industry’s contribution to the local content.

The Saudi insurers’ new product corresponds to the increasing growth of the e-commerce activities in the Kingdom, and helps raising the insurance awareness in the postal services industry.