The Saudi Arabian insurance industry has emerged as one of the fastest growing insurance industries across the world. While the global economic crisis has severely hit other industrial sectors, the insurance industry has marinated its 30-35 percent annual growth rate on the back of compulsory insurance lines. According to RNCOS latest report on “Saudi Arabia Insurance Market to 2012”, protection & savings and health insurance are the fastest growing insurance lines in the Kingdom, with health insurance accounted for around 50 percent of the overall insurance market at the end of 2009. The health insurance sector is expected to grow at fast pace on the back of increasing involvement of private companies and the obligation for foreign nationals and foreign pilgrims to buy insurance covers. In addition, the most recent introduction of compulsory health insurance for private employees, irrespective of the size of the company they are working with, will further boost the health insurance market in the country. Moreover, the general insurance category has shown substantial growth despite being heavily hit by the financial crisis. It is expected to grow at a CAGR of more than 24 percent between 2010 and 2012 owing to rising motor and energy insurance. Property and aviation insurance are expected to emerge as the fastest growing general insurance segments over the forecast period. The motor insurance segment is projected to grow at a CAGR of 30 percent between 2010 and 2012. The fast growth rate will be achieved on the back of promotional strategies deployed by government. With the strong prospective growth in auto sales, the premium of motor insurance will increase as vehicle insurance has been made compulsory in the country. Earlier, another report said Saudi Arabia would be the most attractive prospect for international insurance companies that are looking to operate in the Gulf Cooperation Council (GCC) countries. The “Saudi Arabia Insurance Report Q3 2010” noted that virtually all other trends in the KIngdom are favorable and the market has been opened up to foreign competition. New laws are promoting the development of health insurance, it said. Saudi Arabia's economy has withstood the downturn in energy prices through 2009 well, it added. Saudi Arabia's insurance sector differs from others in the Middle East in that it includes at least one indigenous insurer - Tawuniya - that would rank as a large insurance company in most countries, the report said. Data about Tawuniya published on Tadawul website, showed that its premiums nearly doubled over the course of 2009. By contrast, the next two largest players - Medgulf (a regional insurance company substantially owned by Saudi Arabian interests) and Bupa Arabia (the partly-owned subsidiary of UK health insurance giant Bupa) - lost ground. The Saudi Arabian market is dominated by health products, which is double the value of the next most popular insurance, motor. They account for around 40 percent and 20 percent of the insurance products marketplace, respectively. The report forecast total premiums in 2009 of SR17,480 million. This is made up of non-life premiums of SR16,784 million and life premiums of SAR696 million. In 2014 the corresponding figures are forecast at SR44,618, SR43,295 million and SR1,323 million.
