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Saudi Arabia’s ins. sector is expected to grow by 10% to 15% in revenue in 2025, according to an S&P Global report (pdf). The sector is projected to reach a market size of SAR 83.7 bn by 2028, with a compound annual growth rate (CAGR) of 5.2%, driven by the health and motor ins., together expected to make up 86% of total premiums, according to GlobalData.
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By the numbers: Net income for Saudi ins. companies saw a 17% y-o-y increase in 3Q 2024. The country’s largest insurers Bupa and Tawuniya captured over 50% of the market’s revenues. While the overall sector performed strongly, smaller companies saw a decline in their bottom line. The five largest insurers account for about 80% of the sector’s net income, up from 68% in 3Q 2023.
Health and motor ins. are driving Saudi ins. sector growth, despite a 2.5% decline in motor premiums in 3Q 2024 due to price competition. Life ins. shows strong growth, while property and casualty lines remain profitable, with Tawuniya and Walaa exceeding SAR 1 bn in revenue. Medical and motor ins. lines generate the majority of revenue, although medical performance has weakened since 2023.
Market dynamics: Despite challenges, including competition and declining interest rates, ins. penetration is on the rise, supported by mandatory medical coverage and efforts to reduce uninsured vehicles. Regulatory changes may drive further M&A activity as some insurers struggle to meet capital requirements, the report said.
