The Monetary Agency issues a decision to amend the compulsory vehicle insurance commission rate
The Monetary Agency issues a decision to amend the compulsory vehicle insurance commission rate
The Monetary Agency issues a decision to amend the compulsory vehicle insurance commission rate
The Saudi Arabian Monetary Agency (SAMA) announced the amendment of the compulsory vehicle insurance commission rate, coinciding with the approval of the electronic brokerage service, to become 2%.
And she explained in an official statement that the decision comes for fair competition aimed at providing the best insurance services to citizens and residents at competitive prices, and to enhance professional practices that enhance transparency and disclosure in the sale of insurance products, and in line with the Kingdom’s Vision 2030 that encourages small and medium enterprises, and in an effort to consolidate and stabilize the market. Insurance.
The Corporation, represented by the General Administration of Control of Insurance Companies, has set the maximum commission rate allowed in compulsory vehicle insurance for brokerage companies that have obtained the Corporation’s approval to practice electronic mediation service at 2% of the insurance subscription, starting from Thursday.
It also amended the maximum commission rate that insurance companies are allowed to submit to any insurance broker or agent to become 2% of the insurance participation in the compulsory vehicle insurance, and the decision is effective from its date.
The Monetary Agency excluded brokerage companies and insurance agencies that were actually practicing activity before the issuance of this amendment, as well as employees and sales representatives of insurance companies, and the maximum commission rate that insurance companies are allowed to provide to them is gradually reduced, according to the following:
- 6% as of 01/01/2018.
- 4% as of 01/07/2018.
- 2%, starting from 01/01/2019.
