Saudi GOSI denies facing bankruptcy

The General Organization for Social Insurance (GOSI), which oversees the Kingdom’s national insurance scheme, said its financial position is solid and denied claims that it was facing bankruptcy.

The state-owned organization’s annual revenue exceeded expenses, the organization said on its Twitter account in response to a report published by Saudi-based Al-Jazirah newspaper.  

Pensions and insurance benefits are still paid, GOSI said, adding that the financial risk is related to fulfillment of the next generations’ liabilities given that the current growth rate in pensions and benefits are higher than subscription income growth.

Based on GOSI’s periodical studies, future liabilities exceed asset growth, which could undermine the organization’s ability to pay pensions and insurance benefits for the next generations due to demographic and economic changes.

Meanwhile, subscriptions vary based on insurance coverage, GOSI said.

GOSI also ruled out providing health insurance services for the private-sector retirees, citing the need for additional financing sources.