Range of services, products and insurance policies provided

Malath Cooperative Insurance Company SJSC, formerly Malath Cooperative Insurance and
Reinsurance Company SJSC, is a Saudi Arabian public shareholding company specializing in
cooperative insurance and reinsurance. There are three market divisions that the company
operates in: The Health Insurance segment provides health insurance to both corporate and
private customers; the Auto Insurance segment provides third-party, and a variety of motor
insurance items and services; and the Overall Insurance segment includes, among other things,
land, engineering, disaster, marine, and community life insurance. The company has a head
office, three regional offices in the central, eastern, and western regions, and a Saudi Arabia
network.

Utilized marketing channels

Malath Insurance is active on social media platforms such as Facebook , Instagram,  Twitter, 
YouTube, 

LinkedIn. The rally, the 24-Hour Nurse, Virtual Visits, and a Cost Estimator are only a few of
the facilities offered by Malath Insurance. The group's innovative tools also assist in handling
claims, monitoring expenses, and safely recording and storing family health information. Malath
Insurance also advertises its goods on the internet, television commercials, and print
advertisements in magazines and newspapers. Malath Insurance's latest software provides
smartphone warnings. The company's philanthropic CSR programs address long-standing health
issues. Customers of the company also support organizations by volunteering and donating time
and money during the year.
Business issue due to Covid-19:
 Shift to remote working

trend that stands out among all of the insurers we've spoken with is a widespread transition to
remote working. Of course, this is true in a variety of industries. In most countries, close to 90%
of employees already operate from home, with only a tiny few remaining on-site for crucial tasks
that malath cannot complete remotely. In countries where the virus was first detected, such as
China, several employees have returned to work, most likely in alternating A and B team
patterns.

 Dealing with channel overload

Unity of the most challenging aspects is that much of this is taking place simultaneously as a
massive increase in consumer contacts. Customers are bombarding insurers with questions about
what they might or might not be covered for or how to make a claim, whether it's about travel
insurance, serious illness, health insurance, business interruption, or another problem. For
example, in the United Kingdom, one insurer told us that consumer inquiries, complaints, and
concerns about travel insurance have increased by a whopping 1000 percent. As consumers face
growing financial difficulty, service and call centers affiliated with retirement products receive
substantial inquiries ranging from recognizing account balance adjustments to withdrawal
choices.

 Digitized is optimized

Those insurers with more advanced digital underwriting claims and administrative processes are
unquestionably in a better place than others, even though processing times are now slower than
under normal circumstances. Those that lack these skills or rely on less sophisticated technology
workflows are more likely to struggle. Customers could be lost to more digitally-enabled rivals
in the future, particularly in personal lines, where many customers' patience with non-digitized
processes is waning.

 Fraud risk mounting

However, the possibility of fraud is not limited to consumer statements. The widespread
adoption of remote working is likely to increase by hacking attempts by bad actors looking to
exploit vulnerabilities for various reasons, like obtaining consumer data, stealing financial
information, or disrupting services. Math should provide employees with specific instructions on
remote communication protocols and best practices, including file sharing and data delivery. As
device tension increases, cyber and forensic teams must collaborate with IT teams regularly, if
necessary, minute by minute, to check for problems and search for suspicious behavior.

Major investment asset categories

The company has assts on various categories such as

1. The company plans to invest a significant portion of its available funds in fixed-income
securities.

2. Cash and cash equivalents on bases consistent with the Cooperative Insurance Companies
Control Law.

3. About 80 percent of the company's

investments consist of fixed-income securities,
mainly bonds released by the government of
Saudi Arabia.

4. The debt securities of the Saudi government

and the A-rated countries represent about 50
percent and 30 percent of total investments in
fixed-income securities and short-term
investment instruments, respectively. Saudi
government bonds will be denominated in Saudi
riyals, while A-rated countries' debt securities
are likely to be primarily US dollars.

5. The company does not have any intangible

assets with a weight about its business or its
profitability rate as of the date of this
prospectus.
Size and type pf loss reserves
Estimating the value of reserves is a complex and challenging process, involving many variables
and assumptions, which may sometimes be illogical. Given the nature of the potential risks and
the uncertainty enough in determining the unpaid claims of the insurance policy, the company
can accurately determine the amounts that will be paid in the end to settle these claims.
Immediately after its incorporation, the company will appoint a department to follow up on risks.
It will nominate consultants who can assist the company in ensuring the suitability of its
precautions, as is common in the insurance market in the Kingdom. In addition, the relatively
short period and the limited amount of data on the insurance industry in the Kingdom of Saudi
Arabia regarding experience with claims may affect the company's ability to make realistic
assumptions about specific products such as health care and insurance products for takaful. As a
result, the reserve initially allocated for future claims may be sufficient to meet these liabilities.
Then the company will need to increase the funds, which may negatively and materially affect
the company's activity, financial conditions, and business results.