A man walks past the building of Tawuniya insurance firm in Riyadh, Saudi Arabia, October 11, 2017. REUTERS/Faisal Al Nasser
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Saudi Arabia's central bank is preparing tougher rules for insurance companies as part of a drive to create a smaller number of stronger market players operating in the country, two people with direct knowledge of the matter told Reuters.Current requirements for companies to have at least 100 million Saudi riyals ($27 million) of capital for insurance activities in Saudi Arabia, or 200 million for reinsurance activities, are likely to be significantly increased, the sources said.The biggest Saudi insurance companies by assets, Company for Cooperative Insurance and Bupa Arabia for Cooperative Insurance Co., are not among those facing problems.Saudi Arabia's insurance market is fragmented, with only a few companies dominating the sector and an abundance of smaller firms unable to make inroads.Excluding the top five insurers, market share for the remaining 29 firms is below 37 percent, said Mohammad Ali Londe, a Dubai-based credit analyst at Moody's Investors Service. The figure drops under 24 percent when excluding the top 10 insurers in the market, he said.
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