Saudi insurers develop unified database to investigate claims

Saudi Arabia’s insurance firms have developed a unified database to investigate the previous records of insurance claim applicants, in line with the central bank’s decision to offer no-claim discounts on individual mandatory motor insurance for policyholders, Adel Al-Issa, spokesman for insurance companies in the kingdom, said in a statement.

Accordingly, insurers will access the records of the insured, after obtaining the required prior regulatory approvals, to ensure whether or not the record is claim free.

Commenting on SAMA’s new instructions, Al-Issa added the new rules will protect the interest of policyholders, encourage fair competition in the sector and allow high-quality products at competitive prices.

The decision of the Saudi Arabian Monetary Authority (SAMA), the kingdom's central bank and insurance market regulator, ordering insurers to offer no-claim discounts on individual mandatory motor insurance for policyholders, came into effect on April 1.

The no-claim discount could reach up to 15 percent of the prevailing rate of a one-year motor insurance policy and could be increased to 30 percent for three years of no claims.