Saudi motor pricing rules need repair data that cash claims settlements do not provide, says Bisbjerg
Frederik Bisbjerg argued on LinkedIn that Saudi motor insurers cannot meet the Insurance Authority's new data-based pricing criteria while many claims are settled in cash. The post cited a net combined ratio of 107.3% in 2025 and 102.5% in the first quarter of 2026.
GCC desk AI-assisted summary · Source checkedReported by Frederik Bisbjerg - MBA Summary published 17 October 2026
Illustration. Not a photograph of the event.
The Insurance Authority's new criteria require Saudi motor insurers to price on sound actuarial principles and reliable experience data, not on competitors' rates, Frederik Bisbjerg wrote in a LinkedIn post. Citing Middle East Insurance Review, the post put the market's net combined ratio at 107.3% in 2025 and 102.5% in the first quarter of 2026.
Bisbjerg argued that when a customer takes cash, the insurer "never learns what the repair cost", so its pricing reflects payouts rather than repair costs. The post recommends putting the shift away from cash settlement on the same agenda as the pricing criteria.
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