Saudi Arabia’s general insurance industry to be worth £19bn by 2027

Written by Michael Griffiths

20/10/2023

Saudi Arabia’s general insurance industry is forecast to grow from SAR 56.8bn ($15.2bn) in 2023 to SAR 72.4bn ($19.3bn) in 2027, in terms of gross written premiums (GWP), GlobalData has estimated.

The data and analytics group has calculated that the Saudi Arabian insurance industry is to grow at a compound annual growth rate (CAGR) of 6.2%.

According to GlobalData’s analysis, Saudi Arabia’s general insurance industry is projected to grow by 10.4% in 2023 alone, supported by growth in the economy, rising vehicle sales, and a booming construction sector.

Insurance analyst at GlobalData, Anurag Baliarsingh, said: “The Saudi Arabian general insurance industry grew by 27.7% in 2022, recording its highest year-on-year (YoY) growth over the last 13 years. Mandatory private health insurance for expats, an increase in vehicle sales, and the rising demand for natural catastrophic insurance policies due to extreme weather events have supported the growth of general insurance.

“Also, in August 2023, the Saudi cabinet approved the establishment of the Insurance Authority, a new unified and independent regulator for the insurance sector. This will promote the entry of new insurers into the market, which will increase competition and support growth. It will also boost the market for regional and global insurers operating in the country.”

GlobalData also reported that personal accident and health (PA&H) insurance is the leading line of business in Saudi Arabia, accounting for a 62.6% share of the GWP in 2023.

Increasing health awareness after the pandemic as well as rising healthcare costs due to high medical inflation have supported the demand for private health insurance, which is expected to grow by 11.8% in 2023. Furthermore, mandatory health insurance for employees of private companies and expats has contributed significantly to the growth of PA&H insurance in 2022 and 2023.

Anurag added: “The popularity of private health insurance has increased in Saudi Arabia over the years due to rising costs of treatment, limited coverage, and longer waiting times associated with public health insurance.

“As of July 2023, private health insurers cater to more than 30% of the country’s population, as compared to a 10% share in 2013, the Council of Cooperative Health Insurance. PA&H insurance is expected to grow at a CAGR of 6.3% over 2023-27.”

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