Saudi Arabia Property and Casualty Insurance Market, By Insurance Type (Motor, Property & Fire, Marine, Aviation, Energy, Engineering, Accident & Liability, Others), By Distribution Channel (Insurance Agency, Brokers, Direct Sales, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Saudi Arabia Property and Casualty Insurance Market was valued at USD 44.15 million in 2024 and is anticipated to grow USD 67.34 million by 2030 with a CAGR of 7.35% during forecast period. The Saudi Arabia property and casualty (P&C) insurance market is experiencing steady growth, driven by regulatory reforms, economic diversification under Vision 2030, and increasing awareness of risk management. The government’s focus on strengthening the insurance sector, along with the expansion of infrastructure projects, has led to greater demand for P&C insurance products. Increased foreign investment and market liberalization are further intensifying competition among insurers. As businesses and individuals seek better financial protection, the Saudi P&C insurance market is expected to expand significantly. As per the Saudi Arabia Central Bank (SAMA) 2022 Insurance Market Report, the Saudi insurance sector expanded by 26.9%, with total Gross Written Premium (GWP) increasing significantly.

Key Market Drivers

Regulatory Reforms Strengthening Market Framework

Saudi Arabia’s insurance sector is witnessing significant growth due to regulatory reforms implemented by the Saudi Central Bank (SAMA) and the Insurance Authority. The government has been actively working to strengthen the regulatory framework to ensure transparency, financial stability, and enhanced consumer protection. These reforms include stricter compliance requirements, improved risk assessment mechanisms, and incentives for insurance penetration. The introduction of compulsory insurance policies for sectors such as construction, health, and vehicle ownership is also contributing to the rise in demand for P&C insurance. In line with the 2017 Financial Sector Development Programme, a key component of Vision 2030 focused on strengthening the financial sector, Saudi Arabia has set ambitious targets for Gross Written Premium (GWP) as a percentage of non-oil GDP. The goal is to increase GWP from 1.9% in 2019 to 2.4% by 2025 and 4.3% by 2030.

The consolidation of smaller insurers into larger, more stable entities ensures market resilience and minimizes risks associated with insolvency. The continuous efforts by regulators to enhance governance standards and capital requirements are further expected to bolster confidence among investors and policyholders, driving the market forward.

Technological Advancements and InsurTech Innovations

The integration of technology into Saudi Arabia’s insurance sector is transforming market dynamics by improving operational efficiency and customer experience. The rise of InsurTech companies and digital insurance platforms is making insurance products more accessible to a broader audience. Advanced data analytics, artificial intelligence (AI), and blockchain technology are being used for fraud detection, automated claims processing, and personalized policy recommendations. These innovations are streamlining the underwriting process and enhancing risk assessment accuracy, thereby making insurance more cost-effective and tailored to specific needs.

Additionally, mobile apps and digital platforms are simplifying policy purchases and renewals, boosting market penetration. The Saudi government’s support for digital transformation is further fostering an environment conducive to InsurTech growth, creating new opportunities for both traditional and digital insurers.

Increased Foreign Investment and Market Liberalization

Saudi Arabia’s insurance market is becoming increasingly attractive to foreign investors due to liberalization policies and economic reforms. The government has eased restrictions on foreign ownership in the insurance sector, allowing international insurers to establish a stronger presence in the market. This has led to increased competition, bringing in global expertise, improved product offerings, and enhanced customer service standards. Foreign investment has also facilitated knowledge transfer, innovation, and higher capital inflows, strengthening the overall stability of the insurance industry.

The demand for reinsurance services has risen as local insurers seek to mitigate risks associated with large-scale infrastructure and business projects. The presence of multinational insurance companies is helping to build consumer trust and expand the range of insurance solutions available to businesses and individuals.

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Key Market Challenges

Low Insurance Penetration and Consumer Awareness

One of the major challenges in the Saudi P&C insurance market is the low penetration rate. Compared to developed economies, insurance adoption in Saudi Arabia remains relatively low, particularly in property insurance. Many individuals and businesses lack awareness of the importance of insurance and perceive it as an unnecessary expense rather than a risk management tool. Cultural and religious factors also play a role, as some consumers have reservations about insurance products due to their perceived incompatibility with Islamic financial principles.

Additionally, the lack of financial literacy in certain segments of the population further contributes to underinsurance. Many businesses, especially small and medium-sized enterprises (SMEs), either do not have insurance or hold inadequate coverage, exposing them to significant financial risks in case of unforeseen events such as property damage, theft, or natural disasters. To overcome this challenge, insurers must invest in education and awareness campaigns, improve the accessibility of insurance products, and offer Sharia-compliant policies to attract a broader customer base.

Rising Claims and Profitability Pressures

Another critical challenge in the Saudi P&C insurance market is the increasing number of claims, which is placing pressure on profitability. Factors such as climate-related risks, frequent motor accidents, and business disruptions have led to higher payouts by insurers. Extreme weather conditions, including sandstorms and flash floods, can cause substantial damage to properties and infrastructure, resulting in a surge of claims. Moreover, as urbanization continues and infrastructure projects expand, the risks associated with property damage and liability claims are also rising.

Fraudulent claims remain a concern, as some policyholders attempt to exploit the system, leading to financial losses for insurers. Additionally, inflationary pressures and increasing repair costs for damaged properties and vehicles are further reducing profit margins. To address these challenges, insurers need to enhance their risk assessment models, integrate advanced data analytics and AI for fraud detection, and adopt more efficient claims processing mechanisms. By improving underwriting practices and leveraging digital solutions, insurers can better manage claim payouts and maintain profitability.

Key Market Trends

Growing Demand for Customized Insurance Products

As the Saudi economy diversifies and new industries emerge, there is an increasing need for tailored insurance solutions that cater to specific business and individual needs. Traditional one-size-fits-all policies are being replaced by more flexible coverage options that align with different risk profiles.

For businesses, insurers are developing specialized policies for sectors such as construction, logistics, healthcare, and cybersecurity. With the rise of e-commerce and digital businesses, demand for cyber insurance is increasing as companies seek protection against data breaches, ransomware attacks, and financial fraud. Additionally, liability insurance for professionals and businesses is becoming more important as corporate activities expand.

Increasing Focus on Sustainability and Climate Risk Coverage

Climate change and environmental risks are becoming a growing concern for the insurance industry worldwide, and Saudi Arabia is no exception. The region experiences extreme weather events, such as sandstorms, heatwaves, and flash floods, which can cause significant property damage and disrupt businesses. As a result, insurers are focusing on climate risk coverage and developing policies that help businesses and individuals mitigate environmental risks.

The Saudi government’s Green Initiative, which aims to promote sustainability, is also driving the demand for eco-friendly insurance products. Companies that invest in sustainable buildings, energy-efficient technologies, and carbon reduction strategies may receive incentives such as lower insurance premiums. Moreover, insurers are incorporating environmental, social, and governance (ESG) factors into their risk assessment models, ensuring that they support businesses aligned with sustainability goals.

Expansion of Reinsurance and Risk-Sharing Mechanisms

With the Saudi insurance market expanding, the role of reinsurance is becoming more critical. Local insurers are increasingly partnering with global reinsurers to mitigate large-scale risks, especially in sectors such as construction, energy, and infrastructure projects. As the country undertakes megaprojects like NEOM and The Red Sea Project, insurers need strong risk-sharing mechanisms to ensure financial stability in case of major losses.

Regulatory bodies such as the Saudi Central Bank (SAMA) are also encouraging insurers to strengthen their risk management frameworks by working with reinsurers. This trend is leading to the growth of domestic reinsurance companies and the introduction of innovative risk-transfer solutions, such as catastrophe bonds and parametric insurance.

Segmental Insights

Insurance Type Insights

The motor insurance segment dominated the Saudi Arabia Property and Casualty (P&C) insurance market, driven by mandatory motor insurance regulations, rising vehicle ownership, and increasing road accident rates. The Saudi government enforces compulsory third-party liability (TPL) insurance, ensuring steady demand. Additionally, economic growth and urbanization contribute to higher car sales, further expanding the segment. Insurers are increasingly adopting usage-based insurance (UBI), telematics, and digital claims processing to enhance efficiency. Despite challenges such as fraud and claim inflation, motor insurance remains the largest and most profitable segment in the Saudi P&C insurance market, playing a crucial role in overall industry growth.

Distribution Channel Insights

The insurance agency segment is the fastest-growing in the Saudi Arabia Property and Casualty (P&C) insurance market, driven by regulatory reforms, rising insurance awareness, and digital transformation. The Saudi Central Bank (SAMA) has encouraged the expansion of licensed agencies, improving market accessibility. Agencies benefit from personalized customer service, localized market expertise, and strong insurer partnerships, making them a preferred distribution channel. The rise of digital insurance platforms and InsurTech collaborations further accelerates growth. As demand for motor, property, and liability insurance rises, agencies play a crucial role in bridging the gap between insurers and policyholders, fueling market expansion.

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Regional Insights

The Northern and Central regions dominated the Saudi Arabia Property and Casualty (P&C) insurance market, driven by economic hubs, high population density, and major infrastructure projects. Riyadh, the capital, serves as the financial and business center, attracting corporate insurance demand for property, liability, and motor coverage. The presence of government institutions, multinational companies, and industrial zones further boosts insurance penetration. Additionally, rapid urbanization, rising vehicle ownership, and regulatory enforcement contribute to growth. As Vision 2030 initiatives drive large-scale projects in these regions, the demand for comprehensive insurance solutions continues to strengthen, solidifying their position as the market's key growth areas.

Recent Developments

• In Feb 2025, Saudi Arabia has introduced infra-guaranteed financing and surety bonds to support contractors in the construction industry. These initiatives aim to strengthen the sector's capabilities, aligning with the Kingdom's broader economic diversification strategy.

• In Oct 2024, Saudi Arabia has introduced insurance coverage for expatriate workers' financial dues, aiming to safeguard their rights and enhance the Kingdom's labor market attractiveness.

• In March 2025, The Saudi Red Sea Authority and the Insurance Authority have collaborated to introduce Saudi Arabia's inaugural coastal tourism insurance products, covering risks linked to coastal tourism activities, aiming to enhance the sector's appeal and attract marine tourism participants.

• In Jan 2025, WTW, a well-established global advisory, broking, and solutions firm, has announced that it has obtained a license to operate as a reinsurance broker in the Kingdom of Saudi Arabia (K.S.A.).

Key Market Players

• The Company for Cooperative Insurance (Tawuniya)
• The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF)
• SALAMA Cooperative Insurance Company
• Saudi Arabian Cooperative Insurance Co.
• Gulf Union Cooperative Insurance Company
• Al-Ittihad Cooperative Insurance Company
• Al Sagr Cooperative Insurance Company
• Allianz SE
• Liva Group SAOG
• Gulf General Cooperative Insurance Company

Report Scope:

In this report, the Saudi Arabia Property and Casualty Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Property and Casualty Insurance Market, By Insurance Type:

o   Motor

o   Property & Fire

o   Marine

o   Aviation

o   Accident & Liability

o   Others

• Saudi Arabia Property and Casualty Insurance Market, By Distribution Channel:

o   Insurance Agency

o   Brokers

o   Direct Sales

o   Others

• Saudi Arabia Property and Casualty Insurance Market, By Region:

o   Northern & Central

o   Western

o   Southern

o   Eastern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Property and Casualty Insurance Market.

Available Customizations:

Saudi Arabia Property and Casualty Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).