Saudi Arabia Property and Casualty Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

In Saudi Arabia, the property and casualty insurance market is expected to register a CAGR of more than 4% per year over the next five years. Because GDP went up in 2021, the ratio of insurance premiums to GDP went down from 1.48 percent in 2020 to 1.34 percent in 2021. The most common type of property and casualty insurance is auto insurance. Property and fire insurance are the next most common types.In 2020, 6.9% of online sales were made through the platforms of insurance companies and insurance aggregators. In 2021, that number rose to 7.5%.Saudi Arabia's insurance industry witnessed significant growth, recording a double-digit average annual growth rate. Saudi Arabia’s insurance market is the second largest in the Gulf region by gross written premium after the UAE. The increasing population and diversification of the nation’s economy are among the key factors driving the Saudi Arabian insurance market.

The Saudi Arabian Monetary Agency (SAMA) was put in charge of regulating and keeping an eye on the insurance industry. Property insurance is a type of insurance that covers potential risks to private property, including factories, companies, goods, and warehouses, as it is insured against any disaster such as fire, lightning, etc.

The insurance sector basically provides protection for any country's economy. Social awareness is a major component and challenge for insurance companies. The COVID-19 impact on the property and casualty (P&C) insurance industry was varied, with dwindling premium income in personal lines, increasing demand in professional liability, and a slowdown in specialty lines.

Saudi Arabia Property and Casualty Insurance Market Trends

Saudi Arabia Motor Insurance has Growth Potential

Motor insurance generates one-third of the market share in the property and casualty market. An increase in motor vehicle sales and registration of new vehicles also has a positive trend in terms of premiums. In the Saudi market, motor vehicles must insure the vehicle rather than the driver against incidents involving the owner or authorized driver. All vehicles must have at least third-party liability insurance. This covers all costs incurred by third parties in any incidents. This has led to positive and tremendous growth in motor insurance premiums.

Highest growth in Central region of Saudi Arabia in terms Gross Written Premiums

The central region still had the most GWP, and by 2021, it would have half of the total GWP. The Western region stood in second place with one-third of the market share in the total GWP for 2021, even though its market share decreased. The eastern region’s share of total GWP increased in a positive trend from 2020 to 2021. This positive trend is due to the increased awareness and digitalization of insurance offerings in the United Kingdom and Saudi Arabia.

Saudi Arabia Property and Casualty Insurance Industry Overview

The report covers the major players operating in the property and casualty insurance market in Saudi Arabia. The market is consolidated due to the top three companies holding more than 50% of the market share. The market is expected to grow during the forecast period, due to changes in regulations, upcoming huge construction projects in the region, and other factors. Following are the list of top players, The Company For Cooperative Insurance (Tawuniya), Malath Cooperative Insurance Co, The Mediterranean And Gulf Cooperative Insurance And Reinsurance Company (MEDGULF), Salama Cooperative Insurance Co. “Salama”, Arabian Shield Cooperative Insurance Company.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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