Moody's upgrades Saudi Arabia's credit rating to Aa3 with stable outlook    Riyadh Metro to begin partial operations next Wednesday: Report    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Mahrez leads Al Ahli to victory over Al Fayha in Saudi Pro League    Al Qadsiah hands Al Nassr their first defeat in the Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Downing Street indicates Netanyahu faces arrest if he enters UK    London's Gatwick airport reopens terminal after bomb scare evacuation    Civil Defense warns of thunderstorms across Saudi Arabia until Tuesday    Saudi Arabia, Japan strengthen cultural collaboration with new MoU    Slovak president meets Saudi delegation to bolster trade and investment ties    Saudi defense minister meets with Swedish state secretary    Navigating healthcare's future: Solutions for a sustainable system    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Sixth foreign tourist dies of suspected methanol poisoning in Laos    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Trump picks Pam Bondi as attorney general after Matt Gaetz withdraws    Al-Jasser: Saudi Arabia to expand rail network to over 8,000 km    Sitting too much linked to heart disease –– even if you work out    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi insurance industry one of fastest growing worldwide
By Saudi Gazette Staff
Published in The Saudi Gazette on 06 - 02 - 2010

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 posts 25-30 percent 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 Kingdom, with health insurance accounting for around 44 percent 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 percent 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 Kingdom, is showing substantial growth despite being heavily hit by the financial crisis. It is expected to grow at about 13 percent 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.
The Saudi Arabian insurance sector continues to be dominated by the three biggest players - Tawuniya, Medgulf and Bupa Arabia.
Tawuniya grew massively in 2009, nearly doubling in size in terms of premiums, while the other two lost some premium income during the year.
The Saudi Arabian market is dominated by health products, which is double the value of the next most popular insurance, motor. They account for around 40 percent and 20 percent of the insurance products marketplace, respectively.
Another study by companiesandmarkets.com on Saudi insurance industry forecast that total premiums for 2014 would reach SR42,968 million, with non-life premiums registering SR41,645 million and life premiums at SR1,323 million.
In terms of the key drivers that underpin the forecast, the study forecast that non-life penetration will rise from 1.07 percent in 2009 to 1.71 percent in 2014, and life density from $7.61 to $12.97.
The report's Insurance Business Environment Rating for Saudi Arabia is 53.2 out of 100.
In spite of global financial crisis, the non-life insurance sector in Saudi Arabia has managed to emerge well.
The gross non-life insurance premium is expected to grow at a CAGR of around 13 percent during 2009-2013.
Motor and property insurance account for the bulk of non-life insurance business in the country and are expected to continue playing a dominant role in the future growth also.
Another report said though motor and property insurance dominate the market, some of the emerging insurance lines like engineering and aviation insurance are the fastest growing general insurance businesses and their contribution to the insurance industry is expected to significantly rise in the coming years on flourishing real estate and increasing number of fleets in the aviation sector.


Clic here to read the story from its source.