Wafa Insurance expects lower sales after auto insurance ban

The Saudi Arabian Monetary Authority’s (SAMA) decision to ban Saudi Indian Company for Cooperative Insurance (Wafa Insurance) from issuing auto insurance policies as of today may have a negative effect on the company’s short-term sales but it is unlikely to hurt its financial results, the insurer said in a statement to Tadawul on Thursday.

Clients with valid insurance policies will not be affected by the ban, as the company can still renew these polices or add new vehicles on to them, Wafa Insurance said.

The company vowed to work towards having the ban removed.

SAMA suspended the insurer effective April 27, as it failed to comply with the regulations related to settlement of obligations and customer complaints, in addition to its insufficient technical system, Argaam reported earlier.