Saudi Arabia Motor Insurance Market, By Type (Liability Coverage, Comprehensive); By Distribution Channel (Agents, Brokers, Banks, Online, Others), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Saudi Arabia Motor Insurance Market Size Set to Grow at Significant CAGR of 4% to Reach USD 10.45 Billion by 2029
Saudi Arabia motor insurance market is flourishing due to growing automobile sales driven by an increasing need for personal mobility solutions and motor insurance companies’ rapid adoption of insurtech and innovative tracking & digital technologies.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia motor insurance market size at USD 7.95 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Saudi Arabia motor insurance market size to grow at a significant CAGR of 4.07% reaching a value of USD 10.45 billion by 2029. The number of crashes, traffic mishaps, and accidents is increasing. These factors contribute to the determination of automobile insurance premiums. People in large urban areas, for example, are willing to pay a high premium due to their substantial discretionary income. Texting, talking, or doing other activities while driving is a problem in every city and can be a major cause of accidents. Auto insurance pays for an injured person's medical treatment, lost wages, vehicle repair, and any property damage caused by an accident. Therefore, customers are purchasing auto insurance to mitigate financial losses, which is driving up demand during the forecast period.
Saudi Arabia Motor Insurance Market – Overview
Motor insurance covers cars, trucks, automobiles, motorcycles, and other vehicles. Motor insurance is popular among consumers since it protects them financially in the event of vehicle damage as well as injury to other drivers, passengers, or pedestrians (i.e., third-party cover). Therefore, adequate auto insurance is both a legal need and a necessity.
Impact of COVID-19 on Saudi Arabia Motor Insurance Market
Due to the nationwide lockdown that forced businesses to close, the COVID-19 pandemic severely impacted the Saudi Arabia motor insurance market. Because a significant amount of premiums is used to buy new cars, the closure and subsequent near-halt in activity might make the problem worse. The absence of new car purchases is one of the biggest problems the industry is facing. Since the vast majority of existing vehicles lose their insurance by the third and fourth years, the coverage net for them is often increased to make up for this.
Saudi Arabia Motor Insurance Market - By Distribution Channel
On basis of distribution channel, Saudi Arabia motor insurance market is divided into Agents, Brokers, Banks, and Online segments. During the forecast period, the agent segment is expected to experience the fastest growth in the Saudi Arabia motor insurance market. This is due to the ease of purchasing insurance policies, insurance agents guide discounts, offers, and plans, bolstering consumer confidence in purchasing motor insurance.
Competitive Landscape
Saudi Arabia motor insurance market is fiercely competitive. Major companies in the market include Bupa Arabia for Cooperative Insurance, Tawuniya Insurance, Allianz Saudi Fransi Cooperative Insurance Co., Malath Cooperative Insurance & Reinsurance Co., MetLife AIG ANB Cooperative Insurance Company, Gulf General Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company (SAICO), Aljazira Takaful Taawuni Company, Wataniya Insurance Company, MedGulf Allianz Takaful, Al Rajhi Takaful, AXA Cooperative Insurance Company, Arabian Shield Cooperative Insurance Company, Chubb Arabia Cooperative Insurance Company, and Arabian Gulf Cooperative Insurance Company. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the Saudi Arabia motor insurance market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Saudi Arabia Motor Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Motor Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
- 1. Research Framework
- 1.1. Research Objective
- 1.2. Product Overview
- 1.3. Market Segmentation
- 2. Executive Summary
- 3. Saudi Arabia Motor Insurance Market Insights
- 3.1. Industry Value Chain Analysis
- 3.2. DROC Analysis
- 3.2.1. Growth Drivers
- 3.2.1.1. Growth in the Saudi Arabian economy, leading to an increase in the number of vehicles.
- 3.2.1.2. Mandatory motor insurance laws in Saudi Arabia make it compulsory for all vehicle owners to have insurance.
- 3.2.2. Restraints
- 3.2.2.1. High competition among insurance providers, leads to lower profit margins
- 3.2.3. Opportunities
- 3.2.3.1. Increasing demand for value-added services such as roadside assistance, personal accident cover, and other add-ons, leading to higher revenue streams for insurance providers.
- 3.2.4. Challenges
- 3.2.4.1. High level of fraud and claims leakage
- 3.2.4.2. Unfavorable regulatory changes and policy reforms, leading to increased compliance costs and operational challenges
- 3.3. Technology Advancements/Recent Developments
- 3.4. Regulatory Framework
- 3.5. Porter’s Five Forces Analysis
- 3.5.1. Bargaining Power of Suppliers
- 3.5.2. Bargaining Power of Buyers
- 3.5.3. Threat of New Entrants
- 3.5.4. Threat of Substitutes
- 3.5.5. Intensity of Rivalry
- 4. Saudi Arabia Motor Insurance Market Overview
- 4.1. Market Size & Forecast, 2019–2029
- 4.1.1. By Value (USD Million)
- 4.2. Market Share & Forecast
- 4.2.1. By Type
- 4.2.1.1. Third-Party Liability
- 4.2.1.2. Comprehensive
- 4.2.2. By Distribution Channel
- 4.2.2.1. Agents
- 4.2.2.2. Brokers
- 4.2.2.3. Banks
- 4.2.2.4. Online
- 4.2.2.5. Others
- 5. Competitive Landscape
- 5.1.
- List of Key Players and Their Offerings
- 5.2. South Africa Insurance Company Market Share Analysis, 2022
- 5.3. Competitive Benchmarking, By Operating Parameters
- 5.4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- 6. Impact of Covid-19 on Saudi Arabia Motor Insurance Market
- 7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- 7.1. Bupa Arabia for Cooperative Insurance
- 7.2. Tawuniya Insurance
- 7.3. Allianz Saudi Fransi Cooperative Insurance Co.
- 7.4. Malath Cooperative Insurance & Reinsurance Co.
- 7.5. MetLife AIG ANB Cooperative Insurance Company
- 7.6. Gulf General Cooperative Insurance Company
- 7.7. Saudi Arabian Cooperative Insurance Company (SAICO)
- 7.8. Aljazira Takaful Taawuni Company
- 7.9. Wataniya Insurance Company
- 7.10. MedGulf Allianz Takaful
- 7.11. Al Rajhi Takaful
- 7.12. AXA Cooperative Insurance Company
- 7.13. Arabian Shield Cooperative Insurance Company
- 7.14. Chubb Arabia Cooperative Insurance Company
- 7.15. Arabian Gulf Cooperative Insurance Company
- 7.16. Other Prominent Players
- 8. Key Strategic Recommendations
- 9. Research Methodology
- 9.1. Qualitative Research
- 9.1.1. Primary & Secondary Research
- 9.2. Quantitative Research
- 9.3. Market Breakdown & Data Triangulation
- 9.3.1. Secondary Research
- 9.3.2. Primary Research
- 9.4. Breakdown of Primary Research Respondents, By Region
- 9.5. Assumptions & Limitations
- *Financial information in case of non-listed companies can be provided as per availability.
- **The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
- List of Figures
- Figure 1 South Africa Insurance Segmentation
- Figure 2 Saudi Arabia Motor Insurance Market Value Chain Analysis
- Figure 3 Company Market Share Analysis, 2022
- Figure 4 Saudi Arabia Motor Insurance Market Size, By Value (USD Million), 2019–2029
- Figure 5 Saudi Arabia Motor Insurance Market Share, By Type, By Value, 2019–2029
- Figure 6 Saudi Arabia Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029
- List of Tables
- Table 1 Saudi Arabia Motor Insurance Market Size, By Value (USD Million), 2019–2029
- Table 2 Saudi Arabia Motor Insurance Market Size, By Type, By Value, 2019–2029
- Table 3 Saudi Arabia Motor Insurance Market Size, By Distribution Channel, By Value, 2019–2029
- Table 4 Bupa Arabia for Cooperative Insurance Company Overview
- Table 5 Bupa Arabia for Cooperative Insurance Financial Overview
- Table 6 Tawuniya Insurance Company Overview
- Table 7 Tawuniya Insurance Financial Overview
- Table 8 Allianz Saudi Fransi Cooperative Insurance Co. Company Overview
- Table 9 Allianz Saudi Fransi Cooperative Insurance Co. Financial Overview
- Table 10 Malath Cooperative Insurance & Reinsurance Co. Company Overview
- Table 11 Malath Cooperative Insurance & Reinsurance Co. Financial Overview
- Table 12 MetLife AIG ANB Cooperative Insurance Company - Company Overview
- Table 13 MetLife AIG ANB Cooperative Insurance Company Financial Overview
- Table 14 Gulf General Cooperative Insurance Company - Company Overview
- Table 15 Gulf General Cooperative Insurance Company Financial Overview
- Table 16 Saudi Arabian Cooperative Insurance Company (SAICO) Company Overview
- Table 17 Saudi Arabian Cooperative Insurance Company (SAICO) Financial Overview
- Table 18 Aljazira Takaful Taawuni Company - Company Overview
- Table 19 Aljazira Takaful Taawuni Company Financial Overview
- Table 20 Wataniya Insurance Company - Company Overview
- Table 21 Wataniya Insurance Company Financial Overview
- Table 22 MedGulf Allianz Takaful Company Overview
- Table 23 MedGulf Allianz Takaful Financial Overview
- Table 24 Al Rajhi Takaful Company Overview
- Table 25 Al Rajhi Takaful Financial Overview
- Table 26 Arabian Gulf Cooperative Insurance Company: Company Overview
- Table 27 Arabian Gulf Cooperative Insurance Company Financial Overview
- Table 28 Other Prominent Players Company Overview
- Table 29 Other Prominent Players Financial Overview
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