Saudi Arabia: Regulator foresees strong growth for insurance market in 2025
Source: Middle East Insurance Review | Jun 2025
The Saudi insurance sector is projected to maintain a positive and strong growth trajectory in 2025, with top-line revenue growth forecast to fall in the double-digit zone, says the Insurance Authority (IA).
In its ‘2024 Saudi Insurance Market’ report’, the IA said that this positive outlook suggests that the main factors that drove the significant expansion in 2024 are expected to persist this year, reinforcing the overall optimistic sentiment surrounding the market’s future potential.
The Saudi insurance market in 2024 exhibited notable resilience and robust expansion, evidenced by a significant 14% revenue escalation, despite stagnant earnings. This robust performance post-IFRS17 transition underscores the underlying strength and substantial potential of the sector.
Insurance penetration in Saudi Arabia reached 2.50% in 2024. This is an increase from 2.38% in the previous year, representing a y-o-y growth of 5%. Insurance premium density, representing the average per capita insurance expenditure, rose by 2% to SAR2,082 in 2024, compared to SAR2,035 in the previous year.
However, potential challenges remain. These include price competition and the ongoing need for insurers to maintain robust underwriting discipline to ensure sustainable profitability. The increasing level of competition could exert pressure on insurers’ profitability if not carefully managed through prudent underwriting practices and effective cost control measures. M