Insurances

The Insurances market in Saudi Arabia is projected to reach a gross written premium of US$18.70bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$9.88bn in 2024.
The average spending per capita in the Insurances market amounts to US$499.00 in 2024.
When compared globally, it is evident that the United States has the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.86%, resulting in a market volume of US$21.53bn by 2029.
In the global comparison, the United States is expected to generate the highest gross written premium of US$3.8tn in 2024.
Saudi Arabia's insurance market is experiencing substantial growth due to the country's economic development and increasing awareness of the need for insurance protection.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. 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, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

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

The Insurances market in Saudi Arabia is experiencing rapid growth and development compared to other countries in the region.

Customer preferences: Customers in Saudi Arabia are increasingly demanding more diverse and customizable insurance products to meet their specific needs and preferences. This shift in consumer behavior is being driven by rising incomes, greater awareness about the benefits of insurance, and a growing emphasis on financial security.

Trends in the market: One notable trend in the Saudi Arabian insurance market is the increasing adoption of digital technologies. Insurers are leveraging digital platforms to enhance customer experience, streamline operations, and offer innovative products. Additionally, there is a growing focus on takaful insurance, in line with Islamic principles, which is gaining popularity among the Muslim population in the country.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil, is also influencing the insurance market. As the government works towards privatizing certain sectors, including healthcare, there is a growing need for various insurance products to support this transition. Moreover, regulatory reforms and initiatives to enhance transparency and governance are shaping the insurance landscape in the country.

Underlying macroeconomic factors: The overall economic stability and growth in Saudi Arabia, coupled with a young and growing population, are key macroeconomic factors driving the expansion of the insurance market. As disposable incomes rise and financial literacy improves, more individuals and businesses are recognizing the importance of insurance as a risk management tool, further fueling market growth. Additionally, the government's efforts to promote insurance penetration and increase awareness about the benefits of insurance are contributing to the positive trajectory of the 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.

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.