SAMA has issued the 13th annual report on the Saudi Insurance Market. The report highlights the performance of the insurance sector in the Kingdom of Saudi Arabia in 2019 and the sector’s contribution to the Kingdom's gross domestic product. Below are the highlights:
The insurance sector witnessed growth of circa 8% in 2019, marking the first increase in 3 years, with total written premium reaching SR 37.89 Billion. The increase was led by the Health and Property & Casualty classes. The penetration ratio of the sector increased from 1.20% in 2018 to 1.28% in 2019. Insurance density increased by 5.7% over 2018 to reach SR 1,107. In terms of the underwriting performance, the overall loss ratio remained stable, as improvement in the loss ratio for health insurance were largely offset by an increase in the loss ratio for motor insurance. The net profit (after zakat & tax) for the sector increased more than twice as much over the previous year’s corresponding figure, thereby improving the return-on-assets and return-on-equity ratios. The overall Saudization ratio increased from 72% in 2018 to 74% in 2019.
The report also highlights major regulatory and other developments during the year, including issuance of new Actuarial Work Regulations and Rules for licensing foreign branches, progress in IFRS17 implementation journey, increase in M&A activity, and expansion of Aggregator’s channel to the benefit of policyholders. The above developments are positive signs for the insurance sector and are consistent with SAMA’s efforts to make the insurance sector larger and more contributor to the economy while also ensuring policyholder protection and fair pricing of products are maintained. This will lead to an increase in policyholders and beneficiaries’ satisfaction and trust in the insurance sector. Further, SAMA’s continuous efforts to increase Saudization across multiple levels in the insurance sector are attaining positive results. The next step will be to ensure that the insurance sector invests sufficiently in the training and development of Saudi human resources in order for them to become qualified and attain even more senior and technical positions. SAMA has been continuously motivating the insurance sector to invest in infrastructure and technological systems to promote innovation in order to provide the best products and services for insurance policyholders and beneficiaries.
The 2019 Saudi Insurance Market Report can be found on SAMA website and can be accessed via this link: http://www.sama.gov.sa/en-us/insurance/pages/publications.aspx