Investor Presentaiton
23
Inherent Defects Insurance (IDI)
A Key Driver for Growth and Sustainable Profitability
إعادة
Saudi Re
Background
■ Mandated by the Council of Ministers Resolution No. 509 issued on June
5, 2018 requiring all contractors involved in private sector construction
projects to obtain an IDI policy.
Model
■ SAMA issued in March 2020 a standard policy wording for the IDI
specifying a duration of 10 years for the cover. Link
■ SAMA approved Malath to lead the program on behalf of the market for
5 year.
■ Saudi Re was assigned to exclusively provide the reinsurance protection
to the program for a period of 5 years.
Construction Permits
Premium
Insured
Malath
(Program Leader)
Saudi Re
Technical
Inspection
Services
Coinsurance
Program
(13 Insurers)
(Lead Reinsurer)
Retrocession
Market
Client
Insurer
Reinsurer
Claims
145.7
129.35
129.32
113.52
103.85
86.95
87.88
2014
2015
Source: Construction Permits data from MOMRA
2016
2017
2018
2019
2020
Thousands
Public
www.saudi-re.comView entire presentation