Saudi Arabia Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Saudi Arabia Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

· The Saudi Arabia Motor Insurance Market is estimated to grow at a CAGR of approximately 4% during the forecast period.

· Motor insurance stood in second place with a 26.9% share of total GWP (gross written premium) and it represents 68% of general insurance in terms of GWP, motor insurance gross written premiums decreased by 15.4% in 2018. Motor insurance’s GWP totaled SR 9.4 Billion in 2018, which represents a 26.9% share of total market GWP. Insurance companies retained 94.0% of their Motor underwritten premiums. Motor insurance NWP (Net Written premium) totaled SR 8.8 Billion. Motor insurance’s NEP (Net Earned premium) amounted to SR 9.24 Billion and accounted for 31.0% of the insurance market’s NEP. Insurance companies recorded SR 6.5 Billion in Motor insurance’s NCI (Net Claims Insured) and resulted in a loss ratio of 70.9%. Motor gross claims paid decreased by (16.7%) compared to 2017.

· No Claims Discount (NCD) framework was introduced for the first time for motor comprehensive policies and the existing framework for motor third party liabilities was improved significantly, with the objective to encourage higher uptake of insurance and to reward safe driving behavior. A one-time discount was offered to female drivers, permitted to drive since mid-2018, and for new male drivers as part of the new NCD framework.

Key Market TrendsPotential for demand for the sale of passenger cars:

From mid-year 2018, the Saudi Arabian government lifted the ban on female driving. Saudi Arabia already accounts for about 40% of total vehicles sold in the Middle East, Saudi Arabia's automotive industry is poised to undergo rapid development in the coming years, with 20% of the population of women or three million drivers projected to be added to the Kingdom's roads by 2020.

Insurance density has potential to increase:

Insurance density can increase in the coming year due to recovering in the economy and an increase in GDP (Gross domestic product) per capita income. The insurance industry will grow in the coming years. Due to Government initiatives to boost the insurance industry by implementing new regulation and economic policies aimed at boosting consumer spending

Competitive Landscape

The report covers the major players operating in the Saudi Arabia Motor Insurance Market. The market is fragmented and the market is expected to grow during the forecast period due to recovering in the economy and many other factors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Bao Viet Holdings
PetroVietnam Insurance (PVI)
Bao Minh Insurance Corporation
Post and Telecommunication Joint Stock Insurance Corporation (PTI)
Petrolimex Joint Stock Insurance Company (Pjico)
AAA Assurance Corporation
BIDV Insurance Corporation
Fubon insurance company
Phu Hung Assurance Corporation
Samsung Vina Insurance company

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