Motor insurance in Saudi Arabia: decreasing premiums in 2020

Data published by the Saudi Central Bank (SAMA) show that in 2020, motor premiums reached their lowest level since 2014.

The turnover of this class of business went from 8.603 billion SAR (2.291 billion USD) in 2019 to 8.358 billion SAR (2.225 billion USD) in 2020, that is a 2.9% decrease.

Such results are driven by the supervisory authority's approval of premium reductions and by the new comprehensive insurance regulations for vehicles leased to individuals.

For the record, SAMA has authorized professionals in the sector to make reductions of up to 60% for drivers who did not record any claims.