RIYADH: The merger of Riyadh-based StarCare Insurance Brokers Co. and Jeddah-based Abdul Latif Jameel Insurance Brokers Co. (ALJIBC ) will support the fragmented industry, StarCare CEO Turki Alsudairy told Arab News.
"When two companies that have full management merge, they are able to manage costs better, also, you will be able to attract more talent to the sector due to your larger size," Alsudairy said.
The merger between the two 100 percent Saudi-owned companies has already created the largest insurance intermediary in Saudi Arabia, he said.
He indicated that this merger comes in line with the Saudi Vision 2030 which aims to enhance the financial sector.
"We have over 75 insurance brokers in Saudi Arabia, and it is very fragmented market, he said. Consolidation will help companies as "you consolidate the human resource, the technical skills, the financial power, you are able to manage costs better," Alsudairy added.
