A little snapshot of the Saudi Arabian GI market for you;
Saudi Arabia’s general insurance industry is set to grow at a compound annual growth rate (CAGR) of 8.9% from SAR68.8 billion ($18.4 billion) in 2024 to SAR105.3 billion ($28.1 billion) in 2029, in terms of gross written premiums (GWP), forecasts GlobalData, a leading data and analytics company.
GlobalData’s Insurance Database reveals that Saudi Arabia’s general insurance industry is expected to grow by 9.4% in 2024, supported by economic recovery, favorable regulatory developments, as well as the government’s push for healthcare transformation.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The growth of the general insurance industry in Saudi Arabia is expected to be driven by market consolidation led by an increase in the minimum capital requirement. The industry will also benefit significantly from the country’s economic expansion under Saudi Vision 2030 as it transitions from an oil-dependent economy to developing other sectors, such as transport and logistics, clean technology, and metals and mining.”
In 2024, personal accident and health (PA&H) insurance is expected to be the leading line of business, accounting for a 61.4% share of general insurance GWP. PA&H insurance is expected to grow by 9.4% in 2024, driven by a rise in health awareness and growing demand for specialized healthcare.
The government’s push for healthcare transformation under the Saudi Vision 2030 program will also support the growth of PA&H insurance. The program aims to increase the privatization of the healthcare sector, which is expected to improve access to healthcare by offering better-quality services, enhanced e-health services, and the launch of digital solutions aimed at preventing diseases and improving public health.
Favorable regulatory changes will also support PA&H insurance growth. In July 2024, the Government of Saudi Arabia implemented a new policy that requires mandatory health insurance coverage for domestic workers employed by households with more than four staff members. Additionally, in December 2023. the Insurance Authority announced the development of a national insurance strategy aimed at strengthening the sector, with key objectives including promoting growth, innovation, competitiveness, and efficiency within the sector. PA&H insurance is expected to grow at a CAGR of 9.0% during 2025-29.
Motor insurance is the second largest line of business, accounting for a 22.7% share of the general insurance GWP in 2024. It is expected to grow by 9.5% in 2024, driven by growth in the automotive industry. As per Industrial Center, vehicle sales in Saudi Arabia’s is expected to grow by 18% during 2023-32. Sales of electric vehicles (EVs) have also shown significant growth, with the Saudi Government actively promoting their adoption by implementing favorable policies and making significant investments in the infrastructure.
Additionally, favorable regulatory developments, such as the implementation of comprehensive motor insurance policy in November 2023 by the Saudi Arabian Monetary Authority (SAMA) to broaden the motor insurance coverage, are expected to support the growth of motor insurance premiums. Motor insurance is expected to record a CAGR of 6.9% during 2024–28.
Property insurance is the third largest line of business, accounting for a 10% share of general insurance GWP in 2024. It is expected to grow at a CAGR of 10.4% during 2024-29, primarily driven by increasing demand for residential and commercial properties. Rising frequency of natural catastrophe (nat-cat) events, such as widespread flooding and earthquakes witnessed in H1 2024, which caused significant damage to properties and affected businesses across the region, will also support property insurance growth.
Liability and Marine, Aviation, and Transit (MAT) insurance accounted for the remaining 5.8% share of the general insurance GWP in 2024.
Sahoo concludes: “The Saudi general insurance industry is poised for significant growth during 2024-29, driven by economic diversification and increasing demand for insurance products across different lines of business. With positive regulatory developments and government initiatives, the market is expected to witness substantial expansion, particularly in the PA&H and motor insurance lines.”
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