25% growth for insurance premiums in 2015

According to Standard & Poor’s, the growth of insurance premiums for the Saudi market in 2015 is likely to amount to 25%, with a turnover of 35 billion SAR (9.3 billion USD). Tariff rise accounts for this improvement.

After years of fierce competition among the different companies, the market seems to have settled even though performance varies considerably among the 34 companies listed. With the increase in insurance tariffs, the rating agency is expecting a rise in the premium volumes and in profits.

The classes of business that will benefit most of this improvement are motor and group health. By and large, health insurance will witness a big boost. The noted increase of insurance companies’ capitalization stands as a positive sign for the market.