Sources for news : Eye of riyadh , Arab news, Ar riyadh
In the Kingdom's efforts to diversify its economy, the insurance sector has become a crucial one, closely matching the aspirational objectives of Vision 2030. Technological developments, legislative changes, and the rising demand for insurance products across a range of markets are the main drivers of this shift.
A pillar of the Kingdom's financial industry, the insurance market in Saudi Arabia has grown to become one of the biggest in the GCC. The industry is expanding at an unprecedented rate thanks to economic diversification, technical improvements, and regulatory reforms, all of which are being driven by Vision 2030.
The sector's growth is directly related to Vision 2030 programs that have increased demand for insurance products, such as making auto insurance essential and bolstering social welfare institutions. Innovations in InsurTech are also helping to modernize the industry by improving customer satisfaction and service accessibility. More prospects in the fields of health, life, and property insurance are being made possible by infrastructure improvements carried out in accordance with the vision.
The market is expected to reach SR83.7 billion ($22.28 billion) by 2028, rising at a compound annual growth rate (CAGR) of 5.2%, highlighting the insurance sector's notable rise.
The health and auto insurance industries, which are anticipated to account for 86% of all gross written premiums, are the main drivers of this increase. Due to increased demand brought about by the implementation of required health insurance and initiatives to decrease the number of uninsured automobiles, premium income has increased.
With new regulations mandating that insurance companies give over 30% of their business to regional reinsurers by 2025, the reinsurance industry is flourishing. For instance, the first nine months of 2024 saw a 77% growth in sales for Saudi Reinsurance Company. These regulations guarantee that regional reinsurers actively participate in risk
