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Saudi CMA and Insurance Authority Strengthen Oversight of Insurance Sector
A new partnership aims to enhance supervision and promote growth in Saudi Arabia's rapidly expanding insurance market.
Saudi Arabia’s Capital Market Authority (CMA) and the Insurance Authority have signed a memorandum of cooperation to improve oversight and foster growth in the Kingdom’s insurance sector.
The agreement focuses on enhancing supervision of insurance companies listed on the Saudi financial market and aims to promote stability and expansion within the industry.
This move aligns with the projected growth of Saudi Arabia's insurance market, which is expected to reach a gross written premium of $19.27 billion in 2025, according to Statista.
Despite the U.S. having the highest market value at $3.93 trillion, Saudi Arabia's insurance sector is witnessing rapid development, driven by economic expansion and a growing awareness of the need for insurance coverage.
The memorandum seeks to ensure better coordination between the CMA and the Insurance Authority, supporting Saudi Arabia’s Vision 2030 goals of advancing its financial sector and achieving economic diversification.
The agreement highlights the importance of role integration and consistency between the two authorities to strengthen regulatory practices.
A recent KPMG report revealed a 16.9 percent year-on-year revenue growth in Saudi Arabia’s insurance market for the third quarter of 2024. This growth is largely attributed to increased demand for motor, property, and medical insurance.
Notably, medical insurance experienced a 13.6 percent revenue increase, largely due to the government’s mandatory health coverage regulations.
Motor insurance saw a significant 22.7 percent increase, driven by an expanding auto market and regulatory measures enforcing compliance.
Additionally, property and casualty insurance revenues grew by 20.4 percent, reflecting the rise in infrastructure and real estate developments in the Kingdom.
The Saudi insurance sector’s growth is further supported by ongoing regulatory reforms under Vision 2030, designed to enhance stability and efficiency while promoting a healthy business environment.
These reforms aim to create a robust foundation for the sector, ensuring its capacity to meet future economic challenges and opportunities.
The agreement focuses on enhancing supervision of insurance companies listed on the Saudi financial market and aims to promote stability and expansion within the industry.
This move aligns with the projected growth of Saudi Arabia's insurance market, which is expected to reach a gross written premium of $19.27 billion in 2025, according to Statista.
Despite the U.S. having the highest market value at $3.93 trillion, Saudi Arabia's insurance sector is witnessing rapid development, driven by economic expansion and a growing awareness of the need for insurance coverage.
The memorandum seeks to ensure better coordination between the CMA and the Insurance Authority, supporting Saudi Arabia’s Vision 2030 goals of advancing its financial sector and achieving economic diversification.
The agreement highlights the importance of role integration and consistency between the two authorities to strengthen regulatory practices.
A recent KPMG report revealed a 16.9 percent year-on-year revenue growth in Saudi Arabia’s insurance market for the third quarter of 2024. This growth is largely attributed to increased demand for motor, property, and medical insurance.
Notably, medical insurance experienced a 13.6 percent revenue increase, largely due to the government’s mandatory health coverage regulations.
Motor insurance saw a significant 22.7 percent increase, driven by an expanding auto market and regulatory measures enforcing compliance.
Additionally, property and casualty insurance revenues grew by 20.4 percent, reflecting the rise in infrastructure and real estate developments in the Kingdom.
The Saudi insurance sector’s growth is further supported by ongoing regulatory reforms under Vision 2030, designed to enhance stability and efficiency while promoting a healthy business environment.
These reforms aim to create a robust foundation for the sector, ensuring its capacity to meet future economic challenges and opportunities.