Saudi Reinsurance Company (Saudi Re) organized a seminar on Saudi property insurance market, which was attended by a number of insurance professionals from insurance companies operating in Saudi Arabia.
The seminar comes in challenging times for the insurance industry on the back of the surging number of fire losses in the recent years, the fact that calls for review of the underwriting practices.
The seminar addressed the developments in the Saudi property market, which premiums exceed SR1.3 billion, representing 6 percent of gross written premiums of the whole market.
The speakers emphasized the need to focus on applying the technical standards in pricing and avoid exaggeration in price-led competition.
More importantly, it was highlighted that it is now a necessity for insurers to develop their risk management and loss prevention capabilities and foster a collaborative relationship with the insured clients to enhance the safety standards in the insured facilities through risk surveys and risk improvement recommendations.
The speakers also stressed the importance of inspecting the electrical installations as statistics show that short-circuit is the main cause of fire in buildings. Furthermore, the role of loss adjusters was discussed in the seminar noting that their early involvement is crucial in determining the cause of the loss, assessing the magnitude of the damage, and utilizing the salvage.
Fahad Al-Hesni, Saudi Re’s MD & CEO, mentioned that the size of the property insurance sector has doubled in the last eight years, yet the growth is offset by the losses arising from fire and other natural causes. He added that improving the sector’s performance is highly dependent on investing in risk management, which is an integral part of proactive underwriting management.
Saudi property insurance market shows rapid strides
Saudi property insurance market shows rapid strides
Saudi business optimism holds firm above 60 on non-oil strength
RIYADH: Saudi Arabia’s Business Confidence Index held at 61.6 points in January, reflecting sustained optimism across the Kingdom’s non-oil sectors, official data showed.
The index slipped 0.6 percent from 62 points in December, the General Authority for Statistics said, but remained well above the neutral 50 threshold, indicating continued expansion in business sentiment.
The sustained momentum in the BCI underscores the progress made under Saudi Arabia’s Vision 2030 agenda, which seeks to diversify the economy by reducing reliance on crude revenues.
“The index continues to reflect prevailing optimism in the business sector, supported by establishments’ confidence in the stability of economic activity and the continued growth across various sectors,” said GASTAT.
According to the report, the BCI for the industrial sector recorded 61.7 points in January, maintaining an optimistic level despite a slight decline of 0.8 percent compared to the previous month.
The slight decline in the industrial sector was driven by weaker confidence around current input costs and expectations for the coming month.
In January, the BCI for the services sector recorded 61.3 points, marginally down 1.2 percent from December, due to a limited decline in confidence related to input costs for the current month and expected inputs for the coming month.
The construction sector’s BCI stood at 61.6 points in January, marking a slight fall of 0.3 percent compared to the previous month.
“The marginal decrease (in the construction sector) is attributed to a limited decline in confidence among construction sector establishments, particularly with regard to input costs for the current month and expected inputs for the coming month,” added GASTAT.
Earlier this month, the Riyad Bank Purchasing Managers’ Index compiled by S&P Global showed Saudi Arabia’s PMI at 56.3 in January, driven by output growth, improving market conditions and stronger demand among non-oil businesses.
A separate January report by Standard Chartered forecasts Saudi Arabia’s economy will expand 4.5 percent in 2026, supported by sustained momentum in both hydrocarbon and non-oil sectors. The bank expects non-oil growth at a similar pace, driven by investment and consumption.
