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.