General Liability Insurance - Saudi Arabia

The General Liability Insurance market market in Saudi Arabia is expected to reach a market size (gross written premium) of US$667.10m in 2024.
The average spending per capita in this market is projected to amount to US$17.80 in 2024.
With an annual growth rate (CAGR 2024-2029) of 3.65%, the gross written premium is estimated to reach a market volume of US$798.20m by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$178.4bn in 2024.
Saudi Arabia's General Liability Insurance market is experiencing a surge in demand, driven by increased construction activities and a growing awareness of risk management among businesses.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in Saudi Arabia is witnessing significant growth and evolution.

Customer preferences: Customers in Saudi Arabia are increasingly valuing comprehensive coverage and customized solutions in their General Liability Insurance policies. They are seeking policies that not only protect their business assets but also provide coverage for third-party liabilities, reflecting a global trend towards more holistic insurance products.

Trends in the market: One noticeable trend in the General Liability Insurance market in Saudi Arabia is the increasing demand from small and medium-sized enterprises (SMEs). As the SME sector continues to grow in the country, more businesses are recognizing the importance of protecting themselves against potential risks and liabilities. This trend is driving the expansion of the market as insurance providers develop tailored products to cater to the specific needs of SMEs.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil, is playing a significant role in shaping the General Liability Insurance market. As the country moves towards a more diversified economy with increased focus on sectors such as tourism, entertainment, and manufacturing, businesses are facing new risks that require adequate insurance coverage. This shift in the economic landscape is driving the demand for General Liability Insurance in the country.

Underlying macroeconomic factors: The stable economic growth in Saudi Arabia, coupled with regulatory reforms aimed at enhancing the insurance industry, is creating a conducive environment for the development of the General Liability Insurance market. As the business landscape in the country evolves, insurance providers are adapting their offerings to meet the changing needs of customers. Additionally, the government's efforts to promote entrepreneurship and foreign investment are further fueling the demand for insurance products, including General Liability Insurance.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.