The Saudi Arabian insurance industry has emerged as one of the fastest growing insurance industries across the world
While the global economic crisis has severely hit other industrial sectors, the insurance industry has marinated its 25-30% annual growth rate on the back of compulsory insurance lines.
According to our new research report “Saudi Arabia Insurance Market to 2012”, protection & savings and health insurance are the fastest growing insurance lines in the country, with health insurance accounting for around 44% of the overall insurance market as of the end of 2008. Besides, long-term growth of the insurance industry primarily depends on the performance of protection and savings insurance, owing to low penetration of life insurance in the country. The protection and savings insurance premium is expected to grow at a CAGR of around 55% over the forecast period (2009-2013).
The health insurance sector is also expected to expand vigorously as the increasing involvement of private companies develops the scope for insurance cover, and as foreign nationals and foreign pilgrims are obliged to take out insurance. In addition to this, the most recent introduction of compulsory health insurance for private employees, irrespective of the size of the company they are working with, will further boost the health insurance market in the country.
Moreover, general insurance category, which accounts for majority of insurance premium in the country, is showing substantial growth despite being heavily hit by the financial crisis. It is expected to grow at about 13% during 2009-2013, owing to rising motor and property insurance. Energy and liability insurance are expected to emerge as the fastest growing general insurance segments over the forecast period.
“Saudi Arabia Insurance Market to 2012” is the outcome of extensive research and detailed study of the insurance sector in Saudi Arabia. The report discusses each of the insurance products in detail. Most importantly, it guides clients in the direction in which the sector is likely to move in the coming years. The report also analyzes the pattern of macroeconomic variables and their impact on the insurance sector of the country. It also discusses the emerging industry trends which will decide the future of the insurance sector in the country
