Insurance
From The Report: Saudi Arabia 2013
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Over the past decade Saudi Arabia’s insurance industry has become an important contributor to the economy. In 2011 the sector brought in gross written premiums of $4.93bn, up nearly 13% from $4.37bn the previous year. The majority of this expansion took place in the health and general insurance segments, which together account for more than 95% of the total market. Going forward, with the Kingdom’s rapidly growing population becoming increasingly aware of the benefits of coverage, the industry is expected to continue to expand. While insurance penetration remains low compared to more developed markets around the world, most projections show it rising through 2020 as a result of the Kingdom’s strong economic fundamentals. The reinsurance industry has also grown substantially in recent years.

This chapter includes an interview with Abdullah Al Sharif, Secretary-General, Council of Cooperative Health Insurance. It also includes a viewpoint with Dr Metaib Al Rawqi, CEO, Weqaya Insurance.

Articles from this Chapter

Overview

Towards maturity: Increased awareness among the growing population has the potential to help boost revenues
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Over the past decade Saudi Arabia’s insurance industry has become an important contributor to the Kingdom’s economy. In 2011 the sector brought in gross written premiums (GWPs) of SR18.5bn ($4.93bn), up nearly 13% from SR16.4bn ($4.37bn) the previous year, according to official data from the Saudi Arabian Monetary Agency (SAMA), the country’s central bank. The majority of this expansion took place in the health and general insurance segments, which together account for more than 95% of the…

Analysis

Shaping up: A survey of the sector’s regulatory environment
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The Saudi Arabian Monetary Agency (SAMA), the Kingdom’s central bank, is widely viewed as one of the top insurance regulators in the Middle East and North Africa (MENA) region. According to an October 2012 report released by AM Best, an international ratings agency, SAMA is “well respected locally” and is “one of the more rigorous insurance regulators” in the region. The agency’s solid reputation among Saudi-based underwriters and international observers alike is the result of nearly…

Analysis

Building a backstop: The reinsurance segment is considered to be a key growth driver
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In recent years the reinsurance segment in Saudi has grown substantially. The industry, which is made up of a single dedicated reinsurance company – Saudi Reinsurance – and a handful of firms that offer both insurance and reinsurance services, is considered to be a key driver of future expansion in the Kingdom’s insurance industry. This is in line with regional trends. According to the 2012 GCC Reinsurance Barometer, an annual market survey compiled by the Qatar Financial Centre Authority (QFCA),…

Analysis

New business: Changes in the mortgage market bode well for the insurance industry
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In early July 2012 Saudi Arabia’s cabinet approved a legislative package that is expected to completely overhaul the Kingdom’s mortgage market. The new mortgage framework, which has been in development for more than a decade, is expected to be put in place by the end of 2012, though it could potentially be pushed to early 2013. The legislation has the potential to boost home ownership rates dramatically over the course of the coming decade, in addition to positively impacting the construction…

Analysis

Eyes on the road: The industry is working to reduce traffic accidents
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In recent years Saudi Arabia’s General Department of Traffic (GDT), which falls under the oversight of the Ministry of Interior, has worked with a number of other public agencies to improve safety standards and boost overall efficiency on the Kingdom’s roads. The insurance industry has played a key role in this effort. Since early 2009 Najm for Insurance Services, a private firm that is funded on a cooperative basis by local motor insurance underwriters, has acted as an effective intermediary…

Viewpoint

Dr Metaib Al Rawqi, CEO, Weqaya Insurance, on the changing picture of the Kingdom’s insurance industry
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After years of steady growth, and a phenomenal recent double-digit surge, the Saudi insurance market is demonstrating signs that it is entering a transitional phase. This has yielded an increase in the number of insurance companies in the Kingdom, and offers significant opportunities for international investors to meet the needs of the market and further penetrate the sector. Government spending on infrastructure, the strong macro-economic performance – with a high GDP – and the dynamic, fast-growing…