RIYADH: Saudi Arabia’s insurance sector is set to see improved supervision and enhanced growth prospects following a new agreement between the Kingdom’s Capital Market Authority and the Insurance Authority. 

The memorandum of cooperation aims to strengthen oversight for insurance firms listed on the Saudi financial market, while also fostering greater stability and growth within the sector, the Saudi Press Agency reported. 

This aligns with the expected growth of Saudi Arabia’s insurance market, which is projected to reach a gross written premium of $19.27 billion this year, according to German data gathering platform Statista. 

While the US is expected to generate the highest gross written premium at $3.93 trillion, Saudi Arabia’s market is witnessing rapid growth, driven by economic development and increasing awareness of the need for insurance protection. 

The newly signed memorandum aims to ensure role integration and consistency between the two authorities, supporting the Kingdom’s Vision 2030 goals of developing the financial sector to meet its economic and developmental objectives. 

A recent KPMG report revealed a 16.9 percent year-on-year revenue growth in Saudi Arabia’s insurance sector for the third quarter of 2024, driven by increases in motor, property, and medical insurance. It attributed the growth to ongoing economic reforms under Vision 2030, highlighting regulatory measures that have strengthened the sector’s development and stability. 

Medical insurance was a key driver of overall growth, with revenues rising by 13.6 percent, largely due to the government’s implementation of mandatory health coverage regulations, according to the analysis. 

Motor insurance also saw a significant boost, with revenues up 22.7 percent year on year, the report said. 

The analysis added this growth was tied to an expanding auto market and regulatory measures ensuring compliance with insurance requirements. 

The property and casualty insurance segment also experienced strong growth, with a 20.4 percent increase in revenues, reflecting the ongoing expansion of infrastructure and real estate projects across Saudi Arabia. 

The growth comes as the Kingdom’s regulatory body is working to improve the sector’s efficiency and stability while supporting local infrastructure and fostering a thriving business ecosystem, the analysis said.