The year 2018 marked the first significant slowdown of insurance premiums in Saudi Arabia. The turnover reported was of 34.2 billion SAR (9.1 billion USD), down by 3.38% compared to the 35.4 billion SAR achieved in 2017 (9.43 billion USD).
In spite of the overall market premiums decline, the authorities expect a recovery of the Saudi insurance market in the coming years. These hopes are based on a growth resumption of motor insurance premiums which fell by 15% in 2018. In the short term, the driver's license granted to women will inevitably lead to an increase in the sales and motor premiums.
The second largest class of business following motor insurance, medical insurance, also declined in 2018. Its recovery depends on the reforms and insurance obligations that the authorities intend to introduce.
Despite the regulator's efforts to issue new products such as in life or savings insurance, the Saudi market remains underdeveloped with a relatively low penetration rate.
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