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.
2018 Saudi Insurance Market Report can be found on SAMA website and can be
accessed via this link