The Saudi Central Bank (SAMA) announced the approval of the postal parcel insurance product for several insurance companies to cover the risks of transporting postal parcels – in case of loss or damage – to be offered in the Saudi insurance market. The move comes as a continued effort supporting the development of the insurance sector, launching new and innovative insurance products; to achieve the objectives of the Financial Sector Development Program.
The Central Bank clarified that the approval was in coordination with the Communications and Information Technology Commission, in support of the commission's endeavors to keep pace with the growth of the postal service sector, develop its infrastructure, which will be reflected in achieving the objectives of the Kingdom's Vision 2030 aimed at making the Kingdom a leading global logistics platform and a linking hub for the three continents.
The approval will ensure beneficiaries' rights are protected, contribute to improving their experience, raise the level of services provided to them in the postal sector, and secure financial compensation in the event of parcel loss or damage. In addition to increasing the sector's contribution to local content and reducing costs for parcel service providers.
The Central Bank indicated that the postal parcel insurance product offered through insurance companies operating in the Kingdom was developed to promote and support the growing e-commerce sector in the Kingdom, which in turn increased in the shipment of postal parcels locally and internationally, contributed to the risk management tools associated with it, raise the level of insurance culture in the postal services sector, and to obtain appropriate insurance coverage that meets the needs of the postal industry.