Saudi Arabia – Insurance market well-regulated and leader in GCC
Tuesday, 08 30 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
“Al Jazira Capital” revealed that the Saudi insurance market is well regulated and it is growing faster than other insurance markets in the Gulf Cooperation Council. However, insurance density and penetration rates are still low compared with other parts of the world, adding that this shows the potential of the sector.
Moreover, insurance density increased by 19.7% reaching SAR 1186 per capita in year 2015 compared to SAR 991 per capita in year 2014. This growth shows that even though it follows population growth, it does not follow local economic activity.
It added that the expatriate population will help develop the life insurance sector, indicating that the Saudi insurance sector is under the process of development and has thus a lot of potential to grow. Therefore, although the performance of insurance companies was low lately, the sector is a good investment opportunity for the long term.