Saudi Arabia Motor Insurance Market Overview, 2029

Saudi Arabia Motor Insurance Market Overview, 2029

Saudi Arabia's motor Insurance market mirrors a dynamic and developing scene formed by different variables. As the biggest economy in the Center East, Saudi Arabia has a huge car area driven by a developing populace and expanding urbanization, motor Insurance, a vital part of the monetary area, assumes a urgent part in guaranteeing vehicle proprietors follow administrative necessities and shield themselves monetarily from likely dangers out and about. COVID-19 pandemic significantly impacted the Saudi Arabia motor insurance market, as the countrywide lockdown that caused businesses to close. As a large portion of premiums goes towards the purchase of new cars, the shutdown and accompanying near-halt in activity exacerbate the situation. One of the most serious difficulties confronting the industry was a lack of new automobile purchases. To compensate, the coverage net of existing vehicles was typically expanded, as the vast majority of them were no longer insured by the third and fourth years. Major players in the Saudi Arabia motor insurance 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. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances, to grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

According to the research report, ""Saudi Arabia Motor Insurance Market Outlook, 2029,"" published by Bonafide Research, the Saudi Arabia motor insurance market is anticipated to add to more than USD 590 Million by 2024–29. Telematics technology, which involves the use of devices installed in vehicles to collect data on driving behavior, mileage, and location, is revolutionizing the insurance industry. Insurers use this data to offer usage-based insurance (UBI) policies that tailor premiums based on personal driving habits. In today's world, the number of crashes, traffic mishaps, and accidents is always increasing. All of 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. Insurance firms are always dealing with numerous cases of fraud and are not always as successful as they would want. As other industries, such as banking, become safer, hackers' emphasis shifts to more vulnerable target organizations. Insurers retain a massive database of Personality Identifiable Information (PII) about policyholders, including names, birthdates, social security numbers, street and email addresses, health data, and work data, such as income. Personal information on policyholders' personal property, such as homes and cars, might potentially be a target. In January 2023 – The Saudi Arabian Monetary Authority (SAMA), or the Saudi Central Bank, amended the Unified Compulsory Motor Insurance Policy including updating the exceptions and transferring of rights in recovery cases.

Liability Coverage is one of the main fragments in Saudi Arabia's motor Insurance market. This inclusion is required by regulation for all drivers, which altogether supports its interest. Responsibility inclusion safeguards drivers from monetary liabilities emerging from outsider wounds or property harm in the event of a mishap. The development of this fragment is driven by the rising number of vehicles out and about, tough administrative necessities, and a rising mindfulness among drivers about the significance of Insurance consistence. Comprehensive Insurance is one more developing fragment in Saudi Arabia. This sort of Insurance covers a large number of dangers, including robbery, defacing, and harm brought about by cataclysmic events. The development in complete Insurance can be ascribed to the rising worth of vehicles and the longing among vehicle proprietors to thoroughly safeguard their ventures. Collision Coverage, while not driving as far as market size, is likewise developing consistently. This Insurance covers harms to the safeguarded vehicle in the event of an impact with another vehicle or item. The development is upheld by the high pace of street mishaps in Saudi Arabia, settling on crash inclusion a reasonable decision for some drivers. Other Coverage Segments, such as personal injury Insurance (PIP) and uninsured motorist coverage are less prominent but are also growing due to evolving regulatory frameworks and increasing consumer awareness about additional Insurance options. Compared to other countries, what sets Saudi Arabia apart in its motor insurance market is its rapidly expanding economy, which is driving growth in vehicle ownership. Regulatory reforms aimed at enhancing insurance penetration and enforcing compliance further stimulates growth in insurance segments like liability coverage. The country's strategic geographic location and significant infrastructure investments also contribute to a robust automotive sector, thereby influencing the dynamics of its motor insurance market.

Insurance Agents/Brokers are the main appropriation divert in Saudi Arabia's motor Insurance market. These experts assume an essential part in prompting and helping clients in picking the right Insurance items. Their ability and customized administration take care of the assorted requirements of vehicle proprietors, going from personal drivers to armada administrators and Insurance specialists and merchants overwhelm because of their laid-out networks, client trust, and capacity to explore complex Insurance contributions, making them essential in the market's circulation scene. Direct Response channels are filling altogether in Saudi Arabia. This conveyance technique permits clients to buy Insurance straightforwardly from guarantors through internet-based stages, call focuses, or versatile applications without go-betweens. The development of direct reaction channels is driven by expanding web infiltration, computerized education, and the accommodation it offers to well informed customers who favour smoothed out buying cycles and moment strategy issuance. Banks likewise assume a critical part in circulating motor Insurance in Saudi Arabia. Many banks offer Insurance items as a component of their monetary administrations portfolio. This dispersion channel benefits from the broad client base of banks, strategically pitching valuable open doors, and the comfort of packaging Insurance with other financial items like advances or charge cards. The development in this section is reinforced by the trust and availability related with banking establishments. Other Channels, such as automotive dealerships and online aggregators, are emerging with potential for growth. Automotive dealerships often offer insurance products as part of vehicle sales, capitalizing on customer relationships and enhancing post-sale service offerings. Online aggregators provide comparison platforms that enable consumers to compare multiple insurance policies quickly, fostering transparency and competition in the market.

New Vehicles address the main portion in Saudi Arabia's motor Insurance market. This portion envelops vehicles normally under three years of age. New vehicles frequently require exhaustive Insurance inclusion because of their higher worth and supporting necessities. Insurance for new vehicles regularly incorporates inclusion for harms, burglary, and at times service agreements. The main place of new vehicles is driven by the country's vigorous financial development, which has expanded buying power and interest for more current, mechanically progressed vehicles, severe guidelines frequently require complete Insurance for new vehicles, further supporting this fragment's conspicuousness and Old Vehicles, characterized as vehicles more established than three years, comprise a developing portion in Saudi Arabia's motor Insurance market. Insurance choices for more established vehicles might incorporate fundamental obligation inclusion to meet legitimate necessities or restricted inclusion for explicit dangers like outsider risk, the development of this fragment is affected by the rising number of maturing vehicles on the streets as the vehicle parc extends. Additionally, as vehicles age, their reasonable worth reductions, driving proprietors to look for more savvy Insurance arrangements custom fitted to their decreased resource worth and utilization designs. Other Leading and Growing Segments within the vehicle age category include specialty insurance for classic cars and vintage vehicles. These segments cater to enthusiasts and collectors who own older, well-maintained vehicles requiring specialized coverage against unique risks such as restoration costs and market value appreciation.

Commercial Insurance is the main fragment in Saudi Arabia's motor Insurance market. This section incorporates Insurance inclusion for vehicles utilized for business purposes, like conveyance vans, trucks, and vehicles involved by organizations for coordinated factors or administration activities, the strength of commercial Insurance is driven by the nation's flourishing economy, which has prodded development in business exercises and the extension of organizations requiring armada Insurance. Administrative prerequisites ordering Insurance for commercial vehicles likewise add to the noticeable quality of this fragment. Personal Insurance addresses the developing fragment inside Saudi Arabia's motor Insurance market. This class covers vehicles essentially utilized for personal driving and relaxation purposes. The development of personal Insurance is energized by expanding urbanization, rising dispensable livelihoods, and a developing working class that is gaining personal vehicles for comfort and portability. Personal Insurance regularly incorporates inclusion for mishaps, robbery, and outsider liabilities, taking special care of personal vehicle proprietors trying to safeguard their own resources and consent to lawful prerequisites. Compared to other countries, Saudi Arabia benefits from a buoyant economic environment that supports robust growth in both commercial and personal vehicle ownership. The government's infrastructure investments and economic diversification initiatives have accelerated commercial activities, increasing demand for commercial vehicle insurance. Simultaneously, the burgeoning personal insurance segment reflects societal shifts towards personal vehicle ownership and the adoption of modern lifestyles.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Motor 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 Coverage
• Liability Coverage
• Collision Coverage
• Comprehensive Insurance
• Others

By Distribution channel
• Insurance Agents/Brokers
• Direct Response
• Banks
• Others

By Vehicle Age
• New Vehicle
• Old Vehicle

By Application
• Commercial Vehicle
• Personal Vehicle

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 Motor 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.