Saudi Arabia Life and Non-Life Insurance Market Overview, 2029

Saudi Arabia Life and Non-Life Insurance Market Overview, 2029

The insurance industry in Saudi Arabia consists of both life and non-life segments, both of which is essential to the nation's economy. A growing number of expatriates, rising income levels, and expanding financial planning knowledge have all contributed to Saudi Arabia's life insurance industry's notable rise in recent years. Furthermore, market development has been further driven by regulatory reforms targeted at improving consumer protection and transparency. Simultaneously, the non-life insurance industry, which includes categories such as health, property, and automobile insurance, has grown steadily due to regulatory requirements, infrastructural advancements, and a growing emphasis on risk management among people and organisations. The insurance industry in Saudi Arabia is dynamic and offers plenty of room for insurers to grow and adapt in order to meet changing customer demands and legal requirements. There are a few significant businesses who control the majority of the competition in the Saudi insurance sector. Companies that use their broad networks, varied product portfolios, and powerful brand presence to gain market share include Tawuniya, Bupa Arabia, Medgulf, and Allianz Saudi Fransi Cooperative Insurance Company. These companies engage in intense competition across a range of insurance categories. To improve their competitive stance and maintain growth in a market that is changing quickly, they use techniques including product innovation, digitization, and strategic alliances.

According to the research report, ""Saudi Arabia Life and Non-Life Insurance Market Outlook, 2029,"" published by Bonafide Research, the Saudi Arabia Life and Non-Life Insurance market is anticipated to add to more than USD 8 Billion by 2024–29. The insurance business in Saudi Arabia has experienced significant recent advancements that highlight the industry's dedication to innovation and adaptability in response to shifting market conditions. The enactment of regulatory changes targeted at improving consumer protection, market efficiency, and transparency are noteworthy endeavours. Furthermore, technological developments like the use of data analytics and artificial intelligence are revolutionising the insurance industry by helping insurers to improve consumer experiences, simplify operations, and increase underwriting accuracy. Additionally, partnerships between insurers and insurtech companies are promoting an innovative culture that is propelling the creation of new services and solutions that are specifically designed to meet the changing demands of Saudi customers. All of these changes point to a forward-thinking strategy within the Saudi insurance industry, which is ready to seize new possibilities and overcome obstacles in a competitive and more digitalized environment.

Life insurance and non-life insurance are the two main insurance market sectors in Saudi Arabia. Policies that cover people and their families financially in the case of a serious illness, incapacity, or death fall under the category of life insurance. These insurance provide a number of advantages, including debt payback, income replacement, and retirement and education assistance. As people grow more conscious of the need of long-term financial stability and planning for their loved ones, life insurance is becoming increasingly popular in Saudi Arabia. On the contrary, non-life insurance, also referred to as general insurance, provides coverage for a variety of hazards outside of those associated with life. This covers liability insurance, health insurance, auto insurance, and property insurance. For both people and corporations, non-life insurance is essential. Non-life insurance provides security against unanticipated catastrophes like accidents, natural disasters, and medical emergencies, making it essential for both individuals and organisations. The non-life insurance market in Saudi Arabia is expanding as a result of growing consumer knowledge of risk management, legislative changes, and increased infrastructure development. Although both life and non-life insurance are important, life insurance is starting to take the lead in Saudi Arabia's insurance market. The observed trend can be ascribed to changing socioeconomic variables, including the growth of the middle class, increased consciousness about financial planning, and a preference for investment goods and long-term savings. The sector's growth trajectory has also been aided by legislative measures that seek to increase consumer safety and promote the uptake of life insurance. Consequently, life insurance firms are proactively broadening their range of products and distribution networks to accommodate the changing demands of the Saudi public.

The distribution channels are crucial for efficiently contacting clients in the ever-changing Saudi insurance industry. Direct distribution refers to the sale of insurance products to clients directly, bypassing middlemen. This channel is becoming more popular in Saudi Arabia, especially as digitization increases. Insurance firms use their internet presence and brand to communicate directly with consumers, providing accessibility and ease. In Saudi Arabia, direct distribution channels are steadily expanding due to the country's growing number of tech-savvy individuals. This allows insurers to interact directly with customers and customise products to meet their unique requirements. Agency distribution sells insurance products through middlemen like brokers and agents. Even if internet channels are becoming more and more popular, Saudi Arabia's agency distribution strategy is still strong. Local firms are able to provide more individualised consumer encounters since they have extensive understanding of the market and cultural quirks. Furthermore, agency distribution is a primary channel for insurance sales in Saudi Arabia due to the market's propensity for in-person contacts. This hybrid strategy blends the personal touch of direct distribution with the ease of use of internet platforms. This channel is becoming more popular in Saudi Arabia as insurers work to accommodate a wide range of client demands. Insurers may provide a smooth online shopping experience for clients by combining digital platforms with direct sales channels. This allows customers to explore, compare, and buy insurance plans online, while still having the option to receive individualised support when necessary. This strategy is in keeping with the way Saudi Arabian consumers are becoming more engaged online while still placing a high priority on interpersonal interactions. Saudi Arabia's insurance industry, there are a number of additional distribution channels in addition to the ones described above, such as affinity groups, corporate alliances, and bancassurance. Bancassurance is a business model that leverages banks' enormous branch networks to market insurance products to a broad consumer base. Affinity groups and business alliances can allow insurers to reach specialised markets and provide specialised solutions to particular market segments. Online channels are major development drivers in the insurance business due to the rising popularity of digital interactions and the expanding internet penetration. Nonetheless, conventional channels such as agency distribution are still important, particularly when it comes to building trust and offering customised services. In order to take advantage of the many opportunities present in the Saudi Arabian insurance industry, insurers will need to strategically combine traditional channels with digital innovation as they traverse this ever-changing landscape.
 

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Life and Non-Life Insurance market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Insurance Type
• Life
• Non-life
o Health
o Home
o Motor
o Travel
o Business
o Others

By Distribution Channel
• Direct
• Agency
• Direct & online
• Other

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Life and non-life insurance industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.