Insurance
From The Report: Saudi Arabia 2016
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Collectively, the Saudi Arabian insurance industry has seen five years of double-digit growth in both revenue and net profit. However, the positive performance of a few of the Kingdom’s largest insurers masks more modest results from many of its smaller firms, some of which have accumulated debts over many years. Although industry experts believe the overall outlook is positive for a country with a low insurance penetration by regional standards, conditions for some companies are expected to remain challenging in a crowded marketplace dominated by medical and motor coverage. Clearly defined and supervised insurance activity is in its second decade in the Kingdom and so is relatively new to Saudi Arabia, but the government has recognised that the industry can be a cornerstone of the financial services sector by promoting long-term savings and allowing policyholder funds to be channelled into investment opportunities.

This chapter contains an interview with Raeed Al Tamimi, CEO, Tawuniya.

Articles from this Chapter

Overview

A maturing market: Insurers are tailoring their offerings to a competitive and burgeoning market
OBG
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Collectively, the Saudi Arabian insurance industry has seen five years of double-digit growth in both revenue and net profit. However, the positive performance of a few of the Kingdom’s largest insurers masks more modest results from many of its smaller firms, some of which have accumulated debts over many years. Although industry experts believe the overall outlook is positive for a country with a low insurance penetration by regional standards, conditions for some companies are expected to remain…

Interview

An extended reach: OBG talks to Raeed Al Tamimi, CEO, Tawuniya
OBG
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Interview:Raeed Al Tamimi Do you think the Saudi Arabian Monetary Agency should extend compulsory status to other insurance products so as to support market growth? RAEED AL TAMIMI: Compulsory insurance is necessary for extending protection to Saudi individuals and corporates and increasing awareness. This way, wealth is protected and the economy flourishes. To achieve these goals, there are some insurance products that can be made mandatory, such as fire insurance for malls and public buildings,…

Analysis

Ripe for growth: Given low penetration levels, new regulatory measures to help develop the sector further
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With one of the highest population growth rates in the world outside Africa, and an insurance penetration level of only 1.5% in 2015, compared to the global average of around 6.3%, there is serious room for sector growth and development in Saudi Arabia. Societal attitudes to some forms of cover and the industry as a whole may present obstacles for the development of some lines, but legal and regulatory changes could provide a springboard for growth in the short to medium term. “The insurance sector…