From The Report: Saudi Arabia 2020
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The ongoing process of privatisation driven by Vision 2030 is slated to provide opportunities to assess or cover risk, both for the government and investors looking to take on state assets. Furthermore, as Saudi companies and citizens take up more financial tools, the insurance sector is likely to benefit. Coverage of risks in areas such as trade credit and investment in foreign markets have already emerged as more active segments, with new products targeting specific concerns such as seizure of assets by a foreign jurisdiction. However, downside risks remain for the Kingdom’s insurers. Volatile capital markets caused by the economic fallout from the global outbreak of Covid-19 may result in lower returns. As such, the insurance sector may well experience consolidation in the year ahead.