Saudi Press

Saudi Arabia and the world
Sunday, Sep 07, 2025

Saudi insurance sector’s total premium in Q3 rises over 31% to $3.46bn

Saudi insurance sector’s total premium in Q3 rises over 31% to $3.46bn

Saudi Arabia’s insurance sector recorded a 31.9 percent increase in its total gross written premiums to SR13 billion ($3.46 billion) in the third quarter of 2022 compared to the same period last year, according to a recent report released by the Saudi Central Bank, also known as SAMA.
Gross written premiums are the total premiums an insurer writes during a specific period before deductions for expenses such as ceding and commissions, and its rise signifies an overall development of the sector.   

SAMA’s Quarterly Insurance Sector Report revealed that the health sector’s GWP, which makes up 58.2 percent of the Kingdom’s overall GWP, rose by 26.5 percent in the third quarter to hit SR7.6 billion compared to the corresponding period of 2021.

Jarmo Kotilaine, an economist and strategist, focusing on the Gulf region, told Arab News that the increase in the Kingdom’s overall GWP is not necessarily linked to the financial performance of individual companies.   

“Obviously, the companies have benefited from the more benign economic environment and the reduction in risks post-COVID. But the sector is diverse and still quite fragmented. The performance of individual companies varies. This is part of the reason why SAMA has been pushing for consolidation for a long time,” said Kotilaine.   

According to Mohamed Ramady, a London-based economist and former professor at King Fahd University of Petroleum and Minerals, the Saudi insurance sector has turned the corner following the COVID pandemic slowdown.

“The rise in gross written premiums in Q3 2022 indicates that the private and government sector are now more encouraged to take on new business and insure risks, and individuals are also increasing their personal health insurance schemes, with more companies insuring employees in line with government regulations to do so.” 

Moreover, the GWP of motor insurance also rose 30.1 percent in the third quarter to SR2.5 billion compared to SR1.9 billion in the same period last year. Motor insurance makes up 19.4 percent of Saudi Arabia’s overall GWP.   

Other general insurance GWP, which constitutes 18.8 percent of the Kingdom’s total GWP, rose 56.5 percent in the third quarter to SR2.4 billion, compared to the same period in 2021.

Kotilaine added: “Interestingly, there does seem to be some evidence of product diversification as well. The category of “Other General Insurance” expanded by 56.5 percent year-on-year. While it is still relatively small in aggregate terms, it has somewhat reduced the traditional dominance of health insurance and other policy-driven policies.”   

SAMA report further stated that protection and savings insurance GWP, which amounted to 3.6 percent of the aggregate, saw a 26.5 percent rise year-on-year reaching SR474 million in the third quarter.   

Talking about the insurance sector in Saudi Arabia, Kotilaine noted that the market is heavily dependent on policy-driven compulsory insurance.   

“The market, despite significant development, remains heavily dependent on policy-driven / compulsory insurance, whether health or motor vehicle. Other segments are still relatively small,” he said.

Despite improving numbers, Kotilaine noted that key metrics of the Saudi insurance sector — notably insurance penetration and density — remain low in global comparison. “The sector is fragmented. Continuing to encourage consolidation will boost productivity and likely accelerate the sector development toward the strategic objectives of the authorities.” 

Ramady noted that the Saudi insurance sector will be faced with challenges in insuring large-ticket government projects and there will be “a need for consolidation in the sector to ensure higher capital adequacy to take on larger insurance risk, something that offshore insurance companies have been doing in the Saudi market.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
×