SAMA has issued the 11th annual report on Saudi Insurance Market. The report highlights the performance of insurance sector in the Kingdom of Saudi Arabia in 2017 and the contribution of the sector to the Kingdom's gross domestic product.
In 2017, the insurance underwriting result (operating profits) totaled SAR 449 million, compared to SAR 2.117 billion in 2016. This resulted in a net profit of SAR 688 million in 2017, compared to SAR 2.104 billion in the previous year.
Moreover, gross written premiums (GWP) in the Saudi Insurance market exceeded SAR 36.5 billion in 2017, decreasing by SAR 352 million over the previous year (SAR 36.8 billion) and falling by 1 percent against a growth rate of 1 percent in 2016.
Health insurance gross written premiums, representing 52 percent of the total, increased by 2.2 percent to reach SAR 19 billion in 2017 compared to SAR 18.6 billion in 2016.
General insurance gross written premiums, representing 45 percent of the total, fell by 4.9 percent to reach SAR 16.3 billion in 2017 compared to SAR 17.1 billion in 2016.
Further, protection and Savings Insurance gross written premiums, representing 3.1 percent of the total, increased by 8.5 percent to reach SAR 1.14 billion in 2017 compared to SAR 1.05 billion in 2016.
The insurance sector's total retention ratio increased to 84.5 percent in 2017 from 83.7 percent in the previous year. Gross claims paid stood at SAR 26.5 billion in 2017, rising by 1.9 percent from SAR 26 billion in 2016.
Besides, claims paid for health and motor insurance activities represented 58.3 percent and 31.3 percent, respectively, of gross claims paid in 2017.
Investments in insurance companies amounted to SAR 11.3 billion, policyholders' assets SAR 41.2 billion and shareholders' assets SAR 17.8 billion.
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 2017 Saudi Insurance Market Report can be found on SAMA website and can be accessed via this link.