Life insurance - Saudi Arabia | Statista Market Forecast

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 2.51%, 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$1.3tn 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.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.