Non-life insurances - Saudi Arabia

The Non-life insurance 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 set to reach US$9.88bn in 2024.
This indicates a substantial opportunity for insurers operating in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$263.70 in 2024.
This figure reflects the individual expenditure on insurance policies and showcases the potential demand for coverage among the population.
Looking ahead, the market is anticipated to exhibit a steady growth rate.
The annual growth rate, known as the Compound Annual Growth Rate (CAGR), for the period 2024-2029 is projected to be 3.17%.
As a result, the market volume is expected to increase to US$11.55bn by the end of 2029.
In a global context, it is worth noting that the United States will generate the highest gross written premium in 2024.
The estimated figure for the United States stands at US$2.5tn.
This highlights the dominance of the US market in terms of insurance spending.
These figures demonstrate the potential and growth opportunities that the Non-life insurance market in Saudi Arabia holds.
As the country continues to develop and its population seeks greater financial security, the demand for insurance coverage is expected to rise steadily.
The non-life insurance market in Saudi Arabia is experiencing a surge in demand due to the government's focus on economic diversification and increased awareness about the importance of insurance coverage.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Amidst the evolving landscape of the insurance industry in Saudi Arabia, the Non-life insurances market is experiencing notable developments.

Customer preferences: Customers in Saudi Arabia are increasingly seeking comprehensive insurance coverage for their assets and properties, driving the demand for non-life insurances. The preference for tailored insurance solutions that provide extensive protection against various risks is on the rise, reflecting a growing awareness of the importance of risk management.

Trends in the market: One prominent trend in the Saudi Arabian non-life insurance market is the increasing adoption of digital channels for purchasing insurance policies. Insurers are leveraging technology to enhance customer experience, streamline processes, and offer innovative products. Additionally, there is a noticeable shift towards sustainable and environmentally friendly insurance products, aligning with global efforts towards sustainability.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependency on oil, is influencing the non-life insurance market. As the economy diversifies, there is a corresponding increase in infrastructure development and construction projects, driving the demand for property and engineering insurance. Moreover, regulatory reforms and initiatives to enhance transparency and consumer protection are shaping the market dynamics.

Underlying macroeconomic factors: The macroeconomic landscape in Saudi Arabia, including factors such as GDP growth, inflation rates, and government spending, plays a significant role in shaping the non-life insurance market. As the economy continues to grow and diversify, there is a corresponding increase in insurable assets and risks, providing opportunities for insurers to expand their offerings. Additionally, regulatory reforms and initiatives to enhance transparency and consumer protection are shaping the market dynamics.

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.