General insurance in Saudi Arabia is set to grow at a CAGR of 8.9% from SAR68.8bn ($18.4bn) in 2024 to SAR105.3bn ($28.1bn) in 2029, in terms of gross written premiums.
This is according to GlobalData, which also forecast that Saudi Arabia’s general insurance industry is expected to grow by 9.4% in 2024. Economic recovery, regulatory developments, as well as governmental push for healthcare support this.
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Swarup Kumar Sahoo, senior insurance analyst at GlobalData, comments: “The growth of the general insurance industry in Saudi Arabia is expected to be driven by market consolidation led by an increase in the minimum capital requirement. The industry will also benefit significantly from the country’s economic expansion under Saudi Vision 2030 as it transitions from an oil-dependent economy to developing other sectors, such as transport and logistics, clean technology, and metals and mining.”
In 2024, personal accident and health (PA&H) insurance is expected to be the leading line of business, accounting for a 61.4% share of general insurance GWP.
In addition, PA&H insurance is expected to grow by 9.4% in 2024, driven by a rise in health awareness and growing demand for specialised healthcare.
The government’s push for healthcare transformation under the Saudi Vision 2030 programme will also support the growth of PA&H insurance. The programme aims to increase the privatisation of the healthcare sector, which is expected to improve access to healthcare by offering better-quality services, enhanced e-health services, and the launch of digital solutions aimed at preventing diseases and improving public health.
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By GlobalDataFavourable regulatory changes will also support PA&H insurance growth. In July 2024, the Government of Saudi Arabia implemented a new policy that requires mandatory health insurance coverage for domestic workers employed by households with more than four staff members.
Additionally, in December 2023, the Insurance Authority announced the development of a national insurance strategy aimed at strengthening the sector, with key objectives including promoting growth, innovation, competitiveness, and efficiency within the sector. PA&H insurance is expected to grow at a CAGR of 9% during 2025-29.
Sahoo concludes: “The Saudi general insurance industry is poised for significant growth during 2024-29, driven by economic diversification and increasing demand for insurance products across different lines of business. With positive regulatory developments and government initiatives, the market is expected to witness substantial expansion, particularly in the PA&H and motor insurance lines.”
