RIYADH: Increases in vehicle, health, and property insurance premiums in Saudi Arabia helped fuel a 14.6 percent year-on-year growth in the sector in the third quarter of 2023.
A report from the Kingdom’s Insurance Authority revealed the total written premiums stood at SR14.9 billion ($3.97 billion) in the three months to the end of September 2023, compared to SR13 billion during the same quarter of the previous year.
According to the Saudi Press Agency, the report showed an increase in the insurance sector’s depth of non-oil gross domestic product to reach 2.2 percent during the third quarter of 2023, compared to 2.1 percent during the same quarter of 2022.
This was as a result of the increase in total written premiums, while the loss rate stabilized at 80.7 percent, compared to 81.6 percent for the same period of the previous year.
The authority stated in its report that the sector’s net income reached SR869.6 million during the third quarter of 2023, compared to SR370.6 million in the equivalent three months of 2022.
This came as insurance services increased from SR255 million to SR693.2 million during the third quarter of 2023, while net investment income increased from SR314 million to SR543.9 million.
The Insurance Authority began operations in November 2023, after its creation was approved by the Saudi Cabinet three months earlier.
According to its website, the Authority’s mission is to “regulate the insurance sector in the Kingdom, in a manner that enhances its efficiency and stability, and aligns with the goals of Saudi Vision 2030 and the aspirations of the wise leadership.”
Speaking to Arab News in September 2023, Adel Al-Eisa, media spokesperson for Insurance Companies in Saudi Arabia, said the creation of the authority “underlines the Kingdom’s commitment to building and developing a world class insurance sector.”
He added: “The establishment of the Saudi Insurance Authority will serve the greater purpose of enhancing the Kingdom’s insurance sector, bolstering local infrastructure and creating an advanced, thriving ecosystem that empowers both Saudi-based, regional and global businesses — and, of course, the people, communities and businesses they serve.”
