Takaful News - Saudi Arabia: Health insurance has highest retention rate
Source: Middle East Insurance Review | May 2016
The overall retention rate in the insurance market in Saudi Arabia has risen to 83.0% in 2015, compared to 79.8% in 2014, due to an increase in retention in health insurance, which accounted for 52% of the total premiums estimated to exceed SAR30 billion (US$8 billion) last year.
The retention rate in health insurance, the highest in the market, was 96% in 2015, compared to 93% in 2014. In second place is motor insurance where the retention rate was 91.9% in 2015, sliding from 94.7% in 2014, according to the Aleqt news website.
Energy insurance recorded the lowest retention at 2% in 2015, the same as in 2014. The retention rate in aviation insurance fell to 2% in 2015 from 2.5% in 2014.
The average insured sum in the energy sector stood at SAR5.11 million in 2015, the highest across the different classes of business, followed by aviation insurance with SAR560,000. In contrast, the average insured amount in motor insurance was SAR2,730 while that in health insurance was SAR6,300.
SAR1 = US$0.27