Arab News
Arab News, Tues, Feb 04, 2025 | Shaaban 5, 1446
CMA, Insurance
Authority to boost sector oversight
Saudi Arabia: Saudi
Arabia’s insurance sector is set to see improved supervision and enhanced growth
prospects following a new agreement between the Kingdom’s Capital Market
Authority and the Insurance Authority.
The memorandum of cooperation aims to strengthen oversight for insurance firms
listed on the Saudi financial market, while also fostering greater stability and
growth within the sector, the Saudi Press Agency reported.
This aligns with the expected growth of Saudi Arabia’s insurance market, which
is projected to reach a gross written premium of $19.27 billion this year,
according to German data gathering platform Statista.
While the US is expected to generate the highest gross written premium at $3.93
trillion, Saudi Arabia’s market is witnessing rapid growth, driven by economic
development and increasing awareness of the need for insurance protection.
The newly signed memorandum aims to ensure role integration and consistency
between the two authorities, supporting the Kingdom’s Vision 2030 goals of
developing the financial sector to meet its economic and developmental
objectives.
A recent KPMG report revealed a 16.9 percent year-on-year revenue growth in
Saudi Arabia’s insurance sector for the third quarter of 2024, driven by
increases in motor, property, and medical insurance. It attributed the growth to
ongoing economic reforms under Vision 2030, highlighting regulatory measures
that have strengthened the sector’s development and stability.
Medical insurance was a key driver of overall growth, with revenues rising by
13.6 percent, largely due to the government’s implementation of mandatory health
coverage regulations, according to the analysis.
Motor insurance also saw a significant boost, with revenues up 22.7 percent year
on year, the report said.
The analysis added this growth was tied to an expanding auto market and
regulatory measures ensuring compliance with insurance requirements.
The property and casualty insurance segment also experienced strong growth, with
a 20.4 percent increase in revenues, reflecting the ongoing expansion of
infrastructure and real estate projects across Saudi Arabia.
The growth comes as the Kingdom’s regulatory body is working to improve the
sector’s efficiency and stability while supporting local infrastructure and
fostering a thriving business ecosystem, the analysis said.