Insurance

In 2023 Saudi Arabia’s insurance sector grew significantly, with gross written premium (GWP) rising 22.7% to $17.5bn, driven by regulatory reforms, economic diversification and increased risk awareness. Health insurance, representing 59% of GWP, led the growth, alongside rising motor insurance due to higher vehicle sales. The Insurance Authority, established in late 2023, is expected to foster consolidation, attract international investment and boost premium. With Vision 2030 fuelling diversification into sectors like tourism, health care and construction, the insurance market is poised for continued growth, forecasted to reach $22.3bn by 2028, with health and motor premium driving the increase. This chapter also contains an interview with Naji Al Tamimi, CEO, Insurance Authority; and Shabab Al Ghamdi, Secretary-General, Council of Health Insurance.

Articles from this Chapter

Overview

Premium growth: Multiple segments are benefitting from diversification efforts
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In 2023 Saudi Arabia’s insurance sector witnessed substantial growth, driven by a combination of regulatory reforms, economic diversification and increased awareness of risk management. The sector’s gross written premium (GWP) experienced a notable rise, up 22.7% over the course of the year, with total GWP reaching SR65.5bn ($17.5bn) – as compared to SR53.4bn ($14.2bn) in 2022 – according to data from the Kingdom’s Insurance Authority (IA). This growth was fuelled by the robust performance…

Interview

Protecting interests: Naji Al Tamimi, CEO, Insurance Authority, on supporting sector development and implementing new technologies
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Interview: Naji Al Tamimi, CEO, Insurance Authority What is the outlook for the Saudi insurance market, and what is the role of the Insurance Authority? NAJI AL TAMIMI: The government’s commitment to the industry led to the creation of the Insurance Authority in August 2023. This shift in oversight from the Saudi Central Bank and the Council of Health Insurance to the new body is expected to allow for a more strategic focus on the sector. As the industry’s sole regulatory body, the authority…

Interview

Comprehensive benefits: Shabab Al Ghamdi, Secretary-General, Council of Health Insurance (CHI), on initiatives driving growth in the sector
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Interview: Shabab Al Ghamdi, Secretary-General, Council of Health Insurance In what ways are new initiatives under Vision 2030 changing the relationship between beneficiaries, insurers and health care providers? SHABAB AL GHAMDI: The Health Sector Transformation Programme (HSTP) was established as part of Vision 2030 and sets clear aspirations in terms of governance, funding and the delivery of health care. In particular, it will drive clarity in the relationship between beneficiaries, insurers…

Analysis

Smaller footprint: A focus on sustainability is projected to reduce risks associated with climate change while bolstering bottom lines
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As environmental, social and governance concerns become increasingly important in the corporate world, insurance companies are emerging as potentially key players in the shift away from fossil fuel-powered projects. The UN’s Net-Zero Asset Owner Alliance (NZAOA) reflects an ongoing change in the global industry towards the wider recognition of the risks associated with climate change. However, the failure of the Net-Zero Insurance Alliance – which launched before the COP26 UN Conference on Climate…