According to a SAMA report, the strong economic growth and the institution of a compulsory motor insurance have boosted the insurance sector in the kingdom. The market has reported a growth rate of 35% in 2006. The amount of written premiums is of 6.9 billion SAR (1.8 billion USD) in 2006 against 5.2 billion SAR (1.4 billion USD) in 2005.
42 companies are currently operating on the market which is going through a transitional stage. The authorities have granted a grace period up to March 2008 for the companies that are bound to comply with the new regulations.
The insurance penetration rate which was of 0.44% in 2005 has reached 0.53% in 2006. Insurance density has risen from 223 SAR (59.5 USD) in 2005 to 293 SAR (78 USD) in 2006, that is a 31% rise. The insurance sector employs a total workforce of 3321 staff members, 43% of whom are Saudi.