Saudi insurance market: a 5% annual growth expected until 2024
According to a report published by the Dubai-based consultancy firm Alpen Capital (ME), the Saudi insurance market will report an annual increase in its turnover of around 5% until 2024.
The annual premiums' volume will henceforth rise to 12.8 billion USD. Non-life insurance will achieve a turnover of nearly 12.4 billion USD in 2024 with mandatory insurance being the growth engine. Other factors will contribute to the development of insurance in Saudi Arabia among which:
- the increase in the number of women drivers,
- 5 000 planned investment projects worth nearly 1.6 billion USD will require an insurance coverage
For its part, life business will generate a turnover of 0.4 billion USD per year by 2024, that is an average annual increase of 4.2%. This low rate is accounted for by the departure of expatriates from the kingdom and by the slow growth of the population.
According to the same report, the insurance penetration rate in Saudi Arabia is expected to reach 1.4% while the insurance density would go up to 339.5 USD.
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