Property Insurance - Saudi Arabia

The Property Insurance market market in Saudi Arabia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is projected to reach US$1.81bn in 2024.
This indicates a strong demand for Property Insurance market coverage in the country.
Furthermore, the average spending per capita in the Property Insurance market market is estimated to be US$48.26 in 2024.
This figure highlights the importance of Property Insurance market for individuals and businesses in Saudi Arabia, as they seek to protect their valuable assets.
Looking ahead, the market is anticipated to experience a steady annual growth rate of 3.08% between 2024 and 2029.
This positive trend is expected to result in a market volume of US$2.10bn by 2029.
Such growth signifies the increasing awareness and need for Property Insurance market coverage in the country.
In comparison to other countries, the United States is projected to generate the highest gross written premium in the Property Insurance market market.
In 2024, it is estimated to reach a staggering US$240.4bn.
This demonstrates the dominant position of the United States in terms of Property Insurance market size globally.
In Saudi Arabia, there is a growing trend of property owners opting for comprehensive insurance coverage to protect against natural disasters and property damage.

Definition:

The property insurance market encompasses insurance products that protect individuals and businesses from financial losses related to damage or loss of property, such as homes, commercial buildings, or personal belongings. Policyholders pay regular premiums to insurance providers, and in return, these insurers offer coverage for events like fire, theft, natural disasters, and other property-related risks. Property insurance is crucial for safeguarding assets and providing financial assistance to repair or replace property damaged or lost due to covered incidents.

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.

Insurance for all damage or loss of property caused by fire and natural forces
Insurance for all damage or loss of property caused by crime

All other insurance types, such as life insurance and health insurance
Reinsurance

Amidst the evolving landscape of the insurance industry in Saudi Arabia, the Property Insurance market is experiencing notable developments. Customer preferences in the Property Insurance market in Saudi Arabia are shifting towards more comprehensive coverage options that provide protection against a wide range of risks. Customers are increasingly seeking policies that not only cover property damage but also offer additional benefits such as liability coverage and protection against natural disasters. This trend mirrors the global shift towards more holistic insurance solutions that address multiple potential risks faced by property owners. One of the key trends in the Property Insurance market in Saudi Arabia is the growing adoption of technology to streamline processes and enhance customer experience. Insurers in the country are investing in digital platforms to offer online policy purchases, claims processing, and customer support services. This trend aligns with the broader digital transformation taking place in the insurance sector worldwide, as companies leverage technology to improve operational efficiency and engage with customers more effectively. Local special circumstances, such as regulatory changes and government initiatives, are also influencing the dynamics of the Property Insurance market in Saudi Arabia. The government's focus on enhancing the resilience of the economy to external shocks is driving demand for property insurance among businesses and individuals. Additionally, regulatory reforms aimed at increasing transparency and consumer protection are shaping the competitive landscape of the insurance industry in the country. Underlying macroeconomic factors, including economic growth, urbanization, and infrastructure development, are playing a significant role in driving the expansion of the Property Insurance market in Saudi Arabia. As the country continues to invest in infrastructure projects and urban development, the demand for property insurance is expected to rise. Moreover, the overall economic growth and increasing wealth levels in the country are creating opportunities for insurers to tap into a growing market of property owners seeking to protect their assets. Overall, the Property Insurance market in Saudi Arabia is witnessing a period of transformation driven by changing customer preferences, technological advancements, local special circumstances, and underlying macroeconomic factors. Insurers in the country are adapting to these trends and positioning themselves to capitalize on the opportunities presented by a dynamic and rapidly evolving market.

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.

Berkshire Hathaway, State Farm, and Progressive Corp are just some of the biggest property and casualty insurance companies in the world - all of which hail from the United States. Property and casualty insurance is a type of insurance which covers risks related to loss or damage of property. This type of insurance has two major areas: protection of physical objects and protection against legal liability. In total, the value of gross premiums written by the U.S. property and casualty insurance sector exceeded 850 billion U.S. dollars in 2022. In the same year, 35 percent of the U.S. P&C premiums were written by private passenger auto insurance companies.