Life insurance - Saudi Arabia

Saudi Arabia

The Life insurance market market in Saudi Arabia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is anticipated to reach US$8.82bn in 2024.
This indicates a positive trend and highlights the increasing demand for Life insurance market products in the country.
Furthermore, it is interesting to note that the average spending per capita in the Life insurance market market is estimated to be US$235.40 in 2024.
This indicates the level of financial awareness and the willingness of individuals in Saudi Arabia to invest in Life insurance market coverage for their future security.
Looking ahead, the market is anticipated to grow at an annual growth rate of 2.50%, according to the compound annual growth rate (CAGR) for the period 2024-2029.
This steady growth is predicted to result in a market volume of US$9.98bn by 2029.
This signifies the potential for further expansion and development within the Life insurance market sector in Saudi Arabia.
When comparing the global scenario, it is worth noting that the United States is expected to generate the highest gross written premium in the Life insurance market market, amounting to US$1,288.0bn in 2024.
This figure emphasizes the dominance of the United States in the global market and highlights the significant difference in market size between in Saudi Arabia and the United States.
In conclusion, the Life insurance market market in Saudi Arabia is projected to experience substantial growth and presents opportunities for both insurers and consumers.
As the country continues to develop and individuals recognize the importance of securing their financial future, the demand for Life insurance market products is expected to increase.
With a growing middle class and increasing awareness of the importance of financial security, the demand for life insurance in Saudi Arabia is on the rise.

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Analyst Opinion

Over the past few years, the Life insurance market in Saudi Arabia has been experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly recognizing the importance of financial security and protection for their families, which has led to a growing interest in life insurance products. With a young population that is becoming more financially literate, there is a rising awareness about the benefits of life insurance in providing long-term financial stability.

Trends in the market: One noticeable trend in the Saudi Arabian life insurance market is the shift towards more customized and innovative insurance products. Insurers are adapting their offerings to meet the evolving needs of customers, such as providing coverage for critical illnesses, disability, and retirement planning. Additionally, there is a growing demand for digital insurance solutions, making it more convenient for customers to purchase and manage their policies online.

Local special circumstances: The introduction of regulatory reforms and initiatives by the Saudi Arabian Monetary Authority (SAMA) has played a crucial role in shaping the life insurance market in the country. These reforms aim to enhance transparency, governance, and consumer protection within the insurance sector, ultimately fostering trust and confidence among customers. Moreover, the increasing participation of women in the workforce is driving the demand for insurance products that cater to their specific needs and preferences.

Underlying macroeconomic factors: The overall economic growth and stability in Saudi Arabia have had a positive impact on the life insurance market. As the country diversifies its economy and reduces its reliance on oil, there is a growing emphasis on financial planning and risk management. This, coupled with favorable demographic trends and a supportive regulatory environment, is expected to further fuel the expansion of the life insurance sector in Saudi Arabia.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.