The Saudi Central Bank (SAMA) announces the approving of a parcel insurance product for several insurance companies to cover the risk of transporting parcels – in the event of loss or damage – to be release in the Saudi insurance market. This step comes as part of the ongoing efforts to support the insurance sector to develop and introduce new and innovative insurance products in order to achieve the targets of the Financial Sector Development Program.
SAMA clarified that approving this product came in coordination with the Communications and Information Technology Commission, and in support of the commission's efforts to keep pace with the growth of the sector and develop its infrastructure, as well as reflecting on achieving the objectives of the Kingdom's Vision 2030 aimed at supporting the Kingdom's position as a leading global logistics hub connecting the three continents. The parcel insurance product ensures protecting the rights of beneficiaries and contribute towards improving customer experience, raising the level of services provided to them in the postal sector, ensuring financial compensation in the event of loss or damage of parcels, in addition to increasing the sector's contribution in local content and reducing the cost to parcel service providers.
SAMA pointed out that the parcel insurance product offered through insurance companies operating in the Kingdom were developed to promote and support e-commerce, in line with the recent growth in e-commerce traffic in the Kingdom. Which in turn increased the shipment of parcels domestically and internationally, in addition to promote risk management tools and raise the level of insurance culture in the postal services sector and obtaining appropriate insurance coverage that meets the needs of the postal sector.