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samaSaudi Arabian Monetary AuthorityNewsSAMA Issues the Saudi Insurance Market Report for 2018
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SAMA Issues the Saudi Insurance Market Report for 2018
12/09/2019

SAMA has issued the 12th annual report on Saudi Insurance Market. The report highlights the performance of insurance sector in the Kingdom of Saudi Arabia in 2018 and the contribution of the sector to the Kingdom's gross domestic product.

In 2018, the insurance underwriting result (operating profits) totaled SAR 295 million, compared to SAR 840 million in 2017. This resulted in a net profit of SAR 183 million in 2018, compared to SAR 688 million in the previous year.

With respect to the work force in the insurance sector, the report indicated that 11.726 employees worked in the sector by 2018 compared to 11.272 in 2017. The Saudiazation percentage in the insurance sector increased to 72.3% of the work force in 2018; the saudiazation of administrative and non-managerial positions jumped by 55% and 76% respectively.

 

Moreover, gross written premiums (GWP) in the Saudi Insurance market reached SAR 35.0 billion in 2018, decreasing by SAR 1.5 billion over the previous year (SAR 36.5), decreasing 4.1 percent compared to one percent decreasing in 2017.  This decrease attributed mainly to the reduction in the average cost of vehicle insurance policies, which is consistent with the objectives of the regulatory reforms introduced by SAMA in 2018.

Health insurance gross written premiums, representing 57 percent of the total, increased by 5.4 percent to reach SAR 19.9 billion in 2018 compared to SAR 19.0 billion in 2017.       

General insurance gross written premiums, representing 40 % percent of the total, fell by 14.1 percent to reach SAR 14.0 billion in 2018 compared to SAR 16.3 billion in 2017.

Further, protection and Savings Insurance gross written premiums, representing 3.1 percent of the total, decreased by 3.3 percent to reach SAR 1.102 Billion in 2018 compared to SAR 1.140 billion in 2017.

The insurance sector's total retention ratio increased to 85.8 percent in 2018 from 84.0 percent in the previous year. Gross claims paid stood at SAR 27.2 billion in 2018, rising by 3 percent from SAR 26.5 billion in 2017.

Besides, claims paid for health and motor insurance activities represented 64.7 percent and 25.4 percent, respectively, of gross claims paid in 2018.

These results came in line with the steps taken recently by SAMA to upgrade services and to fairly price products provided for insurance policyholders and beneficiaries with a view to further protecting them and raising the level of their satisfaction. In addition, such results reflect efforts made at SAMA to increase Saudization percentage in insurance sector and encourage the sector to invest in Saudi human resources by training them to be qualified to occupy leading and technical positions. SAMA has also motivated the insurance sector to invest in infrastructure and technological systems and promote innovation in order to provide the best products and services for insurance policyholders and beneficiaries. Such steps would eventually enhance further growth in the sector.

The 2018 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

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