Prime Highlights:
Saudi Arabia’s insurance sector saw a 16.9% year-on-year revenue increase in Q3 2024, driven by growth in motor, property, and medical coverage.
Medical insurance revenues rose by 13.6%, largely due to the implementation of mandatory health coverage regulations by the government.
Motor insurance revenues increased by 22.7%, supported by a growing auto market and regulatory compliance.
Key Background:
Saudi Arabia’s insurance sector experienced a robust 16.9% year-on-year revenue growth in the third quarter of 2024, fueled by significant gains in motor, property, and medical insurance, according to a recent KPMG report.
The medical insurance segment, in particular, played a crucial role in the sector’s performance, with revenues rising by 13.6%. This increase is largely attributed to the government’s implementation of mandatory health coverage regulations. Meanwhile, motor insurance saw a 22.7% revenue boost, driven by the expanding auto market and regulatory measures ensuring compliance with insurance requirements.
The property and casualty insurance sector also performed strongly, with a 20.4% increase in revenues, reflecting ongoing infrastructure and real estate developments across the Kingdom. This growth is supported by Saudi Arabia’s broader economic reforms under Vision 2030, which have strengthened the sector’s stability and contributed to its ongoing development.
Saudi Arabia’s insurance industry has become an attractive proposition for both local and international investors, bolstered by a favorable regulatory environment. The sector’s strong performance in the first half of 2024, with a 25% increase in earnings, underscores its resilience and potential for continued expansion. Regulatory reforms, technological innovation, and market demand are driving this growth, positioning the sector as a key player in the Kingdom’s economic transformation.
KPMG also pointed to advancements in digital insurance solutions, such as platforms like Tameeni and BCare, which are simplifying access to policies. The rise of artificial intelligence-driven claims processing and the adoption of telematics-powered, usage-based insurance are further transforming the sector. Despite ongoing challenges such as pricing competition and market fragmentation, the Saudi insurance industry is well-positioned for future success, with continued growth projected in 2025.
