Riyadh – Mubasher: Saudi insurance sector increased 19.7% year-on-year in gross written premiums (GWP) to SAR 36.5 billion in 2015 from SAR 30.5 billion.
The increase was attributed to a rise in the number of insurance policies written to SAR 8.1 million in 2015 from SAR 6.5 million in 2014.
“Gross premiums ceded to reinsurance expanded at a CAGR of 5.8% over 2011–15,” according to a report released by Aljazira Capital Research.
Insurance penetration in the Kingdom rose to about 1.5% in 2015 from 1.1% in 2014.
Meanwhile, insurance density rose 19.7% year-on-year to SAR 1,186 per capita in 2015 from SAR 991 per capita.
The weighted average retention ratio excluding motor and health insurance stood at 32.0%.
The research firm said that the increase in net claims for motor and health insurance contributed to lower reinsurance options in these segments.
“The regulations introduced by Saudi Arabian Monetary Agency (SAMA) cover areas such as risk management, capital adequacy, reserving, risk-based pricing, and solvency requirements, have helped shape the domestic insurance sector,” the report stated.
The domestic insurance sector advanced 21.7% year-on-year in 2015, registering the highest growth rate in the world.
Non-life insurance accounts for about 97% of the premiums written in Saudi Arabia, while the share of life insurance premium in written premiums is the lowest in Saudi Arabia among all GCC nations.
