Saudis account for only 21.3 percent of local insurance sector
Recent figures regarding the insurance sector in Saudi Arabia have shown that only 21.3 percent of those employed in this sector are of Saudi origin. The remaining positions are filled by expatriates. This figure is a relative increase compared to the 17 percent filled by locals in 1997.
According to Al-Hayat newspaper, the Saudi Cooperative Insurance Company estimated the size of the local insurance sector at 2,315 employees by the end of last year, reflecting a 5.3 percent decrease compared with 1997.
When productivity is assessed, the figures show that the per employee annual average productivity in the insurance sector in the kingdom amounted to SR 1.28 million last year, compared to SR 1.1 million in 1997, a rise of 9.9 percent. This average productivity value is considered one of the highest in the world, due to the relatively high number of insurance subscribers and low number of employees in this industry.
The Saudi government is considering to obligate the local insurance firms wishing to operate officially in the kingdom, to apply high Saudization rates, reaching as high as 100 percent in certain categories.
An executive at a large Saudi insurance company has stated that the Saudi Monetary Authority (Sama) demanded that all the insurance firms operating in the local markets prepare and present clear training programs for Saudi employees as a condition for receiving a work permit in the kingdom. – (Albawaba-MEBG)