Property and Casualty Insurance Market in Saudi Arabia - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The property and casualty insurance market in Saudi Arabia is segmented by Insurance type (Home, Motor, Others) by Distribution Channel (Direct Sales, Agents, Banks, Brokers, and Others)

Market Snapshot

Property and Casualty Insurance Market
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: <4 %

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Market Overview

The government’s plan to develop its healthcare insurance industry under its five-year ‘Digital Health Strategy 2018 plan’ includes the introduction of telemedicine services, which will boost digitalization and support the industry’s growth.

Property Insurance accounted for 11% and is forecasted to grow at a CAGR of 4.9% over 2020-2025. Insurers are launching innovative products to increase its sales. For instance, the construction warranty insurance launched under the Saudi Vision 2030 plan aims to protect the interests of policyholders and real estate developers by providing coverage against the hidden defects after the construction has been completed.

The impact of COVID-19 on property and casualty insurance is mixed. The Covid-19 pandemic and the corresponding health measures have changed customer behaviour immensely. As people sought to make less physical contact, the demand for contactless paying services grew strongly in 2020. One of the immediate impacts was in operational areas, where many insurers had to establish tools for online collaboration, both internal and external and provide their sales network tools to continue sales online. This sudden technology change opens the area for further insurTech innovations on the market, which we believe was not yet as well established as other fintech products. Saudi Arabia is the largest market in the GCC with a young population where 70 per cent are under 30 years old, as well as the largest population. Despite the relative infancy to other neighbouring countries like the UAE and Bahrain, Saudi entrepreneurship is noted with its organic growth. In addition, the country is home to Riyadh, it's capital and largest city that aspires to be one of the top 10 largest economies – announced this year by Crown Prince Mohammed bin Salman (MBS) – as well as Jeddah, the country’s historic commercial hub.

Scope of the Report

This report aims to provide a detailed analysis of the Property and casualty insurance market in Saudi Arabia. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various insurance and distribution channel types. Also, it analyses the key players and the competitive landscape in Property and casualty insurance market in Saudi Arabia. The property and casualty insurance market in Saudi Arabia is segmented by Insurance type (Home, Motor, Others) by Distribution Channel (Direct Sales, Agents, Banks, Brokers, and Others)

By Insurance type
Home
Motor
Rest of Property And Casualty Insurance
By Distribution Channel
Direct Sales
Agents
Brokers
Banks
Other Distribution Channels

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Key Market Trends

Motor Insurance Growth Triggered By Changing Regulatory Landscape

Women drivers have yet to contribute significantly to the number of insured vehicles, and the regulator will help the industry achieve higher penetration of the market through its mandates. Furthermore, a rapid increase in the number of women drivers, which is likely to grow by 3 million in 2020, is expected to facilitate the growth of Saudi’s insurance segment. Motor insurance’s GWP totaled SAR 8.6 Billion in 2019, which represents a 22.7% share of total market GWP. Motor insurance GWP is expected to increase in the coming year due to changes in regulation and many other factors.

T1

Vision 2030 can push the growth of Property insurance

Increased focus towards investments in the nonhydrocarbon sectors aiding job creation and visa reforms for tourists, as part of the Kingdom’s 2030 vision, is likely to drive the scope of insurable assets. Saudi Arabia currently has more than 5,000 capital projects worth approximately USD 1.6tn in the pre-execution stage, which holds significant potential for the Kingdom’s insurance sector. Saudi Arabia’s USD 1.6trn construction projects largest in the GCC region, that includes over 150 development projects worth USD 3.27 billion, for Tabuk region that were announced by Custodian of the Two Holy Mosques King Salman Bin Abdulaziz in November last year. The King also launched more than 600 projects in Qassim, 400km northwest of Riyadh, worth USD 4.36 billion and around another 200 new projects in Hail, also in the northwest of the Kingdom, valued at USD 1.14 billion.

T2

Competitive Landscape

Companies across the world have huge investments in this segment of the market. In Saudi Arabia, the Property and Casualty Insurance market have many companies fragmented over minor shares. Adoption of technological platforms and up-gradation to new Technology leads to an increase in revenue of insurance firms. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of property and casualty insurance to mitigate the risk.

Recent Developments

  • July 2021: Multiline insurance had the next biggest drop in the latest five-year period, falling more than 5 percentage points to 3.6%. P&C insurance also fell significantly, but it remained the highest performing segment.
  • May 2021: IMF staff projects the fiscal deficit to decline to 4.2 percent of GDP this year, slightly lower than the budget forecast, and over the medium-term (by 2026) to move to broad balance given the outlook for the global oil market and the fiscal policy plans of the government.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

      1. 4.1.1 A Brief Overview on Middle East Insurance Market

      2. 4.1.2 Insights on Performance of Insurance Industry in Saudi Arabia

    2. 4.2 Insights on Regulatory Landscape Impacting Insurance Ecosystem

    3. 4.3 Insights on Technological Advancements Impacting Insurance Ecosystem

    4. 4.4 Market Drivers

    5. 4.5 Market Restraints

    6. 4.6 Consumer Behaviour Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/ Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of Covid-19 on the market

  5. 5. MARKET SEGMENTATION AND ANALYSIS

    1. 5.1 By Insurance type

      1. 5.1.1 Home

      2. 5.1.2 Motor

      3. 5.1.3 Rest of Property And Casualty Insurance

    2. 5.2 By Distribution Channel

      1. 5.2.1 Direct Sales

      2. 5.2.2 Agents

      3. 5.2.3 Brokers

      4. 5.2.4 Banks

      5. 5.2.5 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 TAWUNIYA

      2. 6.2.2 REZAYAT GROUP

      3. 6.2.3 AL RAJHI COMPANY FOR COOPERATIVE INSURANCE

      4. 6.2.4 THE MEDITERRANEAN AND GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY

      5. 6.2.5 AXA COOPERATIVE INSURANCE CO

      6. 6.2.6 WALAA COOPERATIVE INSURANCE COMPANY

      7. 6.2.7 TRADE UNION COOPERATIVE INSURANCE CO.

      8. 6.2.8 SALAMA COOPERATIVE INSURANCE CO.

      9. 6.2.9 SAUDI ARABIAN COOPERATIVE INSURANCE CO.

      10. 6.2.10 ALLIANZ SAUDI FRANSI COOPERATIVE INSURANCE COMPANY

      11. 6.2.11 SAUDI RE FOR COOPERATIVE REINSURANCE COMPANY*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Property and Casualty Insurance Market in Saudi Arabia market is studied from 2018 - 2027.

The Property and Casualty Insurance Market in Saudi Arabia is growing at a CAGR of <4% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

TAWUNIYA, REZAYAT GROUP, AL RAJHI COMPANY FOR COOPERATIVE INSURANCE, THE MEDITERRANEAN AND GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY, AXA COOPERATIVE INSURANCE CO are the major companies operating in Property and Casualty Insurance Market in Saudi Arabia.

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