Saudi Arabia Property and Casualty Insurance Market Growth
The Saudi Arabia property and casualty (P&C) insurance market is on track to reach USD 67.34 million by 2030, growing at a Compound Annual Growth Rate (CAGR) of 7.35% from USD 44.15 million in 2024. This growth is primarily driven by regulatory reforms, economic diversification under Vision 2030, and heightened awareness of risk management.
Key Market Drivers
The Saudi government’s emphasis on strengthening the insurance sector and expanding infrastructure projects has increased demand for P&C insurance products. Regulatory advancements led by the Saudi Central Bank (SAMA) and the Insurance Authority have enhanced transparency, financial stability, and consumer protection. Compulsory insurance policies in sectors like construction, health, and vehicle ownership contribute to the market’s growth.
Key Market Challenges
Despite the positive outlook, the market faces challenges such as low insurance penetration due to cultural perceptions and financial illiteracy, particularly in property insurance. Many businesses, especially Small and Medium-sized Enterprises (SMEs), remain underinsured, exposing them to risks like property damage or natural disasters. To address this, insurers should invest in awareness campaigns and offer Sharia-compliant policies.
Key Market Trends
Demand for customized insurance products is rising as the economy diversifies. Insurers are creating tailored policies for sectors such as construction, logistics, healthcare, and cybersecurity. Cyber insurance is becoming increasingly important, protecting businesses from threats like data breaches.
Key Market Players
Major players in the Saudi Arabia P&C insurance market include:
- The Company for Cooperative Insurance (Tawuniya)
- The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF)
- SALAMA Cooperative Insurance Company
- Saudi Arabian Cooperative Insurance Co.
- Gulf Union Cooperative Insurance Company
- Al-Ittihad Cooperative Insurance Company
- Al Sagr Cooperative Insurance Company
- Allianz SE
- Liva Group SAOG
- Gulf General Cooperative Insurance Company
The market’s growth is aligned with Saudi Arabia’s Vision 2030, which targets increasing Gross Written Premium (GWP) from 1.9% in 2019 to 2.4% by 2025 and 4.3% by 2030 as a share of non-oil GDP. As foreign investment and market liberalization increase, competition among insurers is intensifying, prompting businesses and individuals to seek enhanced financial protection.
