Saudi insurance spending per capita up 16% to SAR 2,367 in 2024

Per capita spending on insurance in Saudi Arabia grew 16% to SAR 2,367 by the end of 2024, compared to SAR 2,035 a year earlier, data from the Insurance Authority (IA) showed.

The per capita insurance spending is defined as the gross written premiums (GWPs) during the year divided by population.

Per capita spending on insurance in Saudi Arabia grew at a compound annual rate (CAGR) of 21.2% over the last five years.

Health insurance accounted for 55% of total per capita spending in the sector last year, followed by general insurance with 34%, as well as protection and savings insurance with 10%.

The IA report explained that the insurance penetration, which is represented by the ratio of total insurance premiums to the gross domestic product (GDP), increased to 1.87% in 2024, compared to 1.64% in 2023.

Similarly, the insurance sector's contribution to the non-oil GDP also expanded to 2.59% in 2024 compared to 2.38% in 2023, and it is targeted to increase to 4.3% by 2030.

Last year witnessed the issuance of several regulations, guidelines, and standardized policies aimed at keeping pace with developments in the sector and the broader economy. Notable among these were:

- The issuance of the Unified Health Insurance Policy for Domestic Workers, which sets the minimum mandatory health coverage for this category.

- The Unified Professional Liability Insurance Policy for entities inspecting compliance with the Saudi Building Code.

- The Unified Civil Liability Insurance Policy for crowded venues and high-risk activities.

GWPs saw a 16% year-on-year (YoY) increase to SAR 76.1 billion in 2024.

Health insurance GWPs stood at SAR 42.2 billion in 2024, up 9% from SAR 38.6 billion in 2023. Similarly, general insurance GWPs grew by 8% YoY to SAR 26.2 billion in 2024. Protection and savings insurance premiums saw a 200% hike YoY, accounting for 10.1% of GWPs up from 3.9% in 2023.

In the general insurance segment, auto insurance premiums accounted for 53%, or SAR 13.9 billion, of total. General accidents & liability insurance came second with 13%.