Saudi Arabia’s general insurance market is forecasted to grow significantly in the coming years, with gross written premiums (GWP) estimated to rise from SAR68.8 billion (US$18.4 billion) in 2024 to SAR105.3 billion (US$28.1 billion) by 2029.
This reflects a compound annual growth rate (CAGR) of 8.9%, according to a report by GlobalData.
GlobalData’s analysis predicts the general insurance market will expand by 9.4% in 2024 alone.
Swarup Kumar Sahoo, a senior insurance analyst at GlobalData, said that the sector’s growth is being driven by stricter capital requirements and broader economic diversification.
“The growth of the general insurance industry in Saudi Arabia is expected to be driven by market consolidation led by an increase in the minimum capital requirement,” he said.
He said that the general insurance sector in Saudi Arabia is expected to benefit significantly from the country’s economic expansion under Saudi Vision 2030, as it transitions from an oil-dependent economy to developing other sectors such as transport, logistics, clean technology, and mining.
Personal accident and health (PA&H) insurance is expected to remain the largest segment of the market, contributing 61.4% of total GWP in 2024. This segment is projected to grow by 9.4% next year, driven by heightened health awareness and increased demand for specialised healthcare services.
Reforms under Saudi Vision 2030, which aim to privatise healthcare and improve access through digital solutions, are also expected to boost this sector.
The government’s introduction of mandatory health coverage for domestic workers in households with more than four employees, effective mid-2024, is likely to further expand PA&H insurance premiums.
GlobalData forecasts a 9.0% CAGR for this line between 2025 and 2029.
Motor insurance, the second-largest segment, is expected to account for 22.7% of total GWP in 2024, with a growth rate of 9.5% projected for the year. This growth is closely linked to increased vehicle sales, which are anticipated to rise by 18% between 2023 and 2032, according to the Industrial Center.
Electric vehicle sales are gaining momentum, supported by government incentives and investments in charging infrastructure.
Regulatory changes, such as the Saudi Arabian Monetary Authority’s (SAMA) comprehensive motor insurance requirements introduced in late 2023, are also anticipated to drive premium growth.
Property insurance, accounting for 10% of GWP in 2024, is expected to grow at a CAGR of 10.4% over the next five years.
Rising demand for residential and commercial properties and an increased frequency of natural disasters, such as floods and earthquakes that caused significant losses in early 2024, are contributing factors.
Specialty lines, including liability and marine, aviation, and transit insurance, together represent 5.8% of the market in 2024. These areas are also expected to benefit from Saudi Arabia’s broader economic diversification and infrastructure investments.
With ongoing regulatory reforms and government initiatives under Saudi Vision 2030, Saudi Arabia’s general insurance industry is expected to see substantial growth across multiple lines, supported by both market demand and structural changes.
“With positive regulatory developments and government initiatives, the market is expected to witness substantial expansion, particularly in the PA&H and motor insurance lines,” Sahoo said.
