Takaful News - Saudi Arabia: Tawuniya inks risk management MoU
Source: Middle East Insurance Review | Jan 2016
Tawuniya Insurance Company, one of the largest insurers in Saudi Arabia, has signed a memorandum of understanding (MoU) to provide support to small and medium enterprises (SMEs).
The MoU was signed with the Kafalah SME financing programme, a joint developmental initiative between the Ministry of Finance and Saudi banks. The pact is the first of its kind in the Kingdom, providing insurance protection for SMEs.
The MoU will lead to mechanisms for sharing and analysing statistics and data, which play a role in facilitating the development of the SME sector, particularly with regards to insurance. This allows for the analysis and management of risks facing such enterprises with much greater efficiency.
SMEs represent 90% of the total number of business enterprises in the Kingdom and account for 28% of GDP.
Tawuniya’s CEO Raeed Abdullah Al Tamimi said the MoU will play a role in activating mechanisms of support for national projects, while providing Tawuniya’s insurance expertise to businessmen in SMEs. “This will increase their capabilities to control and manage risks effectively, so as to provide comprehensive protection to their activities and enhance their efficiency,” he said, noting that the training programme on raising awareness about insurance would be particularly important.
Mr Al Tamimi added: “Tawuniya is working to create a culture of risk management and insurance awareness. This is achieved through genuine partnerships and a broad range of insurance services and solutions matching with the requirements of the private sector – and in particular SMEs which have a particular need for efficiency in managing resources and budgets. Managing operational and financing risks is a prerequisite to the continuing prosperity of this sector and the well-being of the national economy.”