- September 16, 2022
- Posted by: SHMA Consulting
- Category: Uncategorized
Are you looking for insurance industry insights for 2021-2022? Check out our latest data and statistics on the Saudi Arabian insurance market.
According to our research, the Saudi Arabian insurance market is forecasted to grow at a compound annual rate of 5.3%. Data and statistics from Saudi Arabia’s Ministry of Finance shows that total premiums written in the kingdom increased by 4% in 2020 to SAR 179 billion (US$48 billion). This growth was driven largely by non-life premiums, which rose by 6% to SAR 106 billion (US$28 billion).
However, growth in the life insurance sector is expected to remain relatively flat, with premiums increasing by just 1.6%. This is due to a number of factors, including a lack of awareness about life insurance products and the low penetration rate of these products in the Saudi market.
The health insurance sector was one of the hardest hit by the pandemic, with premiums falling by 3% to SAR 21 billion (US$5.6 billion) in 2020. However, this is expected to rebound strongly in 2021 as more people get vaccinated and life starts to return to normal.
One bright spot for insurers has been motor insurance, where premiums have been steadily rising in recent years. This trend is likely to continue in 2021 as more people buy cars and use them more often for leisure travel within Saudi Arabia. Motor insurance premiums are expected to reach SAR 22 billion (US$5.9 billion) in 2021, an increase of 9% from 2020.
The Saudi insurance market is forecasted to grow at a compound annual rate of 6.9% between 2021 and 2025, according to data from BMI Research. This growth will be driven by continued economic expansion and rising demand for insurance products.