Medical insurance is the fastest growing segment in the Kingdom, with a share of around 50 percent in 2009.
JEDDAH: The Saudi Arabian insurance market is poised for tremendous growth and will continue to expand in the near future, RNCOS said in its study “Saudi Arabia Insurance Market to 2012”.
Further, the government has taken several initiatives to make healthcare and motor insurance compulsory in the country, which has become the major driving force for the insurance market.
Another important factor is the Kingdom’s rapidly increasing population, which has led to the rise in incidences of diseases such as, obesity, diabetes, and hypertension.
Moreover, rise in healthcare spending will further boost the Saudi Arabia insurance market in future.
Based on the study, protection and savings and health insurance are the fastest growing insurance segments in the Kingdom, with a share of around 50 percent of the overall insurance market in 2009.
Due to rise in pressure on public healthcare system, the government is rapidly promoting the involvement of private healthcare in the Kingdom. As a result, the health insurance sector is expected to grow at a fast pace with increasing involvement of private players.
Moreover, the government has plans to buy insurance covers for foreign pilgrims. In addition, the introduction of compulsory health insurance for employees in private companies will lead to further growth in the health insurance market in the Kingdom.
Moreover, the general insurance sector has shown significant growth and is expected to grow at a CAGR of over 24 percent during 2010-2012.
Among general insurance category, property and aviation insurance are expected to emerge as the fastest growing segments, while the motor insurance segment is projected to grow at a CAGR of 30 percent during 2010-2012. In addition, the government has made vehicle insurance compulsory in the country, which will further increase the premium of motor, insurance in the Kingdom.
Saudi Gazette