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Friday, Jul 01, 2022

Saudi insurance sector records 8.4% growth in 2021

Saudi insurance sector records 8.4% growth in 2021

The Saudi Central Bank (SAMA) issued the 15th annual report on the insurance market in Saudi Arabia. The report highlights the performance of the insurance sector, financial results and its contribution to the Kingdom's gross domestic product for the year 2021.

According to the report, the insurance sector grew by 8.4% in 2021 with total written premium of SR42 billion. The protection, saving and property insurance classes achieved notable increase in written premiums.

Furthermore, the report indicated that the contribution of the insurance sector to non-oil GDP decreased slightly by -0.01% to reach 1.91%, and the overall loss ratio increased to reach 83.4% in 2021 compared to 76.7% in 2020.

The net loss (after zakat and tax) for the insurance sector reached SR47 million in 2021 compared to a net profit of SR1.38 billion in the previous year. The increase in investment income helped offset the impact of operational losses.

Additionally, the report discussed regulatory developments in the insurance sector, including the amendments of certain articles of the Cooperative Insurance Company Control Law, the issuance of a number of regulations and the development of several insurance products. The report noted a 2% increase in Saudization in 2021 to reach 77%.

The Insurance Market Report 2021 is available at SAMA's website (https://www.sama.gov.sa/en-us/insurance/pages/publications.aspx).

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