Insurance penetration in the GCC by country 2022
In 2022, the highest insurance penetration rate among the Gulf Cooperation Council countries was in the United Arab Emirates at a rate of 2.5 percent. The average insurance penetration rate for the region in that year was 1.5 percent.
Current GCC insurance industry
The insurance industry experienced positive growth over the years. Although the economic conditions during 2016 and 2018 hindered its growth, it is expected to improve during the coming years. The insurance penetration rate in the GCC region has increased from one percent in 2011 to 1.9 percent in 2020. The insurance penetration rate is the gross written premium measured as a percentage of the gross domestic product. Among the Gulf Cooperation Council countries, the Saudi Arabia had the largest market share of the insurance industry of 40.6 percent in 2020, followed by United Arab Emirates at 27.5 percent. The insurance market in the GCC region was mainly dominated by non-life insurance. There were optimistic projections for the industry that can be explained by the population growth and stable economic development. The governments have been implementing crucial steps that support the growth of the sector such as the continued application of mandatory insurance coverage, the reinforcement of the regulatory reforms, and economic diversification.
GCC insurance industry projections
The insurance penetration rate in the Gulf Cooperation Council region was expected to remain far below the global average of 7.4 percent between 1.8 to 1.9 percent until 2026. The market size of the insurance industry in the Gulf Cooperation Council was expected to increase from 26.5 billion U.S. dollars in 2021 to 31.1 U.S. billion dollars in 2026. The compound annual growth rate (CAGR) among the GCC countries between 2021 and 2026 was expected to be the highest for Kuwait at 5.3 percent, and the lowest for Saudi Arabia at 1.6 percent.
Current GCC insurance industry
The insurance industry experienced positive growth over the years. Although the economic conditions during 2016 and 2018 hindered its growth, it is expected to improve during the coming years. The insurance penetration rate in the GCC region has increased from one percent in 2011 to 1.9 percent in 2020. The insurance penetration rate is the gross written premium measured as a percentage of the gross domestic product. Among the Gulf Cooperation Council countries, the Saudi Arabia had the largest market share of the insurance industry of 40.6 percent in 2020, followed by United Arab Emirates at 27.5 percent. The insurance market in the GCC region was mainly dominated by non-life insurance. There were optimistic projections for the industry that can be explained by the population growth and stable economic development. The governments have been implementing crucial steps that support the growth of the sector such as the continued application of mandatory insurance coverage, the reinforcement of the regulatory reforms, and economic diversification.
GCC insurance industry projections
The insurance penetration rate in the Gulf Cooperation Council region was expected to remain far below the global average of 7.4 percent between 1.8 to 1.9 percent until 2026. The market size of the insurance industry in the Gulf Cooperation Council was expected to increase from 26.5 billion U.S. dollars in 2021 to 31.1 U.S. billion dollars in 2026. The compound annual growth rate (CAGR) among the GCC countries between 2021 and 2026 was expected to be the highest for Kuwait at 5.3 percent, and the lowest for Saudi Arabia at 1.6 percent.
