Saudi Arabia Motor Insurance Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Saudi Arabia Motor Insurance Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

COVID-19 has understandably had a significant impact on Saudi Arabia's financial services industry. The banking and insurance sectors have proven resilient this year. Insurance is a fast-growing industry in Saudi Arabia. This growth is expected to continue as the population expands and more ex-pats relocate to the country. The motor insurance premium volume has grown some billion from 2020 to 2021.

There are 34 Islamic insurance cooperatives in Saudi Arabia. In addition to this are larger international companies that offer policies including health insurance and life insurance. Tawuniya (national) and BUPA (international) are the two biggest firms by market share.

Saudi Arabia's motor vehicle sales of passenger cars were reported at thousands of units in June 2021. This records a decrease from the previous number of thousand units for December 2020. Saudi Arabia's motor vehicle sales recorded fewer units in Dec 2020, compared with units in the previous year.

Saudi Arabia's motor vehicle sales are updated yearly, available from 2005 to 2020. The center estimated that Saudi Arabia would acquire some percent of car sales in the Gulf Cooperation Council countries by 2025, out of a total market of million cars, including electric vehicles.

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. Government initiatives to boost the insurance industry by implementing new regulations and economic policies aimed at boosting consumer spending.

The demand for insurance in Saudi Arabia is still primarily driven by government legislation and the consumer penetration strategies of major insurance players. Recently, the digital platforms through which products and services are provided are on the rise.

We see many more motor insurance policies sold online. However, so far, we have seen this agility more with the larger insurance players. Digital platforms, when adequately designed and when taking into account the target market’s needs, are certainly beneficial; they allow insurers to easily access large pools of new customers whose demands and needs are aligned with the relevant product offer. They can also lower the costs of distribution.

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

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