Merger of insurance firms ensures integration, says Aljazira Takaful CEO

Merger of Saudi insurance firms aims to achieve integration, which is a key to increase competitiveness and maximize the value of the company, Saqr Nader Shah, CEO and MD of Aljazira Takaful Taawuni Co., told Argaam in an exclusive interview.

“The board of directors of the two companies seeking merger should have a clear vision, which is key for a successful merger, added to that having the ability to slash costs, and maximize the company’s value in term of human resources, in addition to to quicker access to markets,” Shah said.

“There is a large number of insurers in the market, and meeting growing demand for insurance products requires more effort from service providers,” he added.

The Saudi insurance sector’s contribution to the Kingdom’s gross domestic product (GDP) dropped to 1.2 percent last year from 1.7 percent in 2017, Shah noted, adding that the contribution is very marginal when compared to other countries.

“The sector is lacking innovation and awareness of non-compulsory products,” Shah said, concluding that the entrance of foreign investors to the market is positive and does not affect competitiveness