The Saudi Central Bank (SAMA) announced approving a parcel insurance product for several insurance companies to cover the risk of transporting parcels – in the event of loss or damage – to be released 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 said 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. This will reflect 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 to local content and reducing the cost to parcel service providers. SAMA pointed out that the parcel insurance product offered through insurance companies operating in Saudi Arabia was developed to promote and support e-commerce, in line with the recent growth in e-commerce traffic in the Kingdom. Thus, increasing parcels shipping domestically and internationally, in addition to promoting risk management tools and raising the level of insurance culture in the postal services sector and obtaining appropriate insurance coverage that meets the needs of the postal sector.
