Reinsurance cessions to local market prioritize domestic firms, boost competition: WTW CEO

Mohammed Alsudairy, CEO of WTW Re Saudi

Mohammed Alsudairy, CEO of WTW Re Saudi, said that some companies recorded a notable increase in reinsurance premiums in H1 2025, following the new regulation that requires insurers to offer 30% of their reinsurance cessions to domestic reinsurers.

This gave local companies priority and greater opportunities, while prompting foreign firms to enhance their service offerings in order to remain competitive.

The reinsurance sector delivered strong results during the first half of the current year, Alsudairy said in an interview with Argaam on the sidelines of a WTW event.

He added that reinsurers are now facing growing competition from locally licensed reinsurance firms in the Kingdom, allowing these domestic companies to take on a leading role and receive priority in the market.

The CEO pointed out that this competition contributes to more favorable pricing for buyers and creates opportunities for new players to enter the market. It also enables brokers to access better support and write risks more efficiently, which he described as a positive development. Furthermore, such competition encourages the introduction of new ideas and products that cater to the needs of all stakeholders.

Alsudairy pointed out that the Kingdom is witnessing growth in the insurance sector, with gross written premiums rising from SAR 65 billion in 2023 to over SAR 75 billion in 2024. He expects this figure to reach SAR 150 billion by 2030.

According to data compiled by Argaam, the Insurance Authority (IA) last year stipulated that insurance companies offer 30% of their reinsurance cessions to local companies operating within the Saudi market.