The Saudi Arabian Monetary Authority (SAMA) issued its 10th annual report for the insurance market in the kingdom. The report highlights the continued growth of the insurance sector in the kingdom in 2016 and for the tenth year in a row, and an increase in its contribution to the kingdom's GDP.
The results from underwriting operations (operating profits) amounted to (2,469) million riyals in 2016, compared to (963) million riyals during the previous year, which indicates an improvement in the management of insurance portfolios, which resulted in the sector achieving net profits of (2,104) million riyals In 2016 compared to (810) million riyals during the previous year
The total insurance premiums written in the Kingdom during the year 2016 exceeded (36.85) billion riyals, an increase of (360) million riyals over the previous year, reaching (36.49) billion riyals, i.e. a growth rate of (1 percent) compared to (19.7 percent) in 2015.
The total written premiums for health insurance decreased during 2016 by (1.8 percent) with a value of (18.63) billion riyals compared to about (18.97) billion riyals in 2015, and health insurance represents (51 percent) of the total written premiums.
The growth rate in written premiums for general insurance during 2016 was (4.1 percent) with a value of (17.17) billion riyals, compared to (16.49) billion riyals in 2015, and the general insurance represented (47 percent) of the total written premiums.
The growth rate in the premiums subscribed for protection and savings insurance during 2016 reached (1.5 percent) with a value of (1,051) million riyals, compared to about (1.036) million riyals in 2015, and the protection and savings insurance represented (3 percent) of the total written premiums.
The total retention rate of the insurance sector increased to (84 percent) compared to the previous year (83 percent), and the total paid claims reached (26) billion riyals for the year 2016 compared to (24.5) billion riyals for the year 2015, up by (6.1 percent). Paid claims for health and vehicle insurance represent (56 percent) and (35 percent) respectively of the total paid claims for the year 2016.
The capital invested in insurance companies amounted to about (12.6) billion riyals, and the total assets of the insured reached (40.8) billion riyals, and the total assets of the shareholders reached (16.7) billion riyals. The number of employees working in insurance companies reached (10,039) employees, of whom Saudis represented (58 percent).
All of this comes in conjunction with the recent measures taken by the SAMA aimed at improving the level of services provided to policyholders and beneficiaries of insurance coverage, and pricing the products provided to them in a fair way to raise their level of satisfaction and maximize their protection. Results also coincided with the efforts made by SAMA to increase the rate of localization in the insurance sector and encourage it to utilize national work force to train and qualify them to occupy leadership and technical positions. In addition, SAMA urges them to invest in infrastructure, technical systems and innovation to provide the best products and services that can be provided to insurance policy holders and beneficiaries.
The insurance market report in the Kingdom for the year 2016 can be found on the Saudi Arabian Monetary Authority website through this (link)