Saudi Arabia’s Insurance Authority has developed the National Insurance Sector Strategy, to unlock the sector’s full potential and position the Saudi insurance market among the world’s fastest-growing and most advanced.
The insurance regulator has fulfilled one of its core mandates for which it was established in 2023, in unveiling the National Insurance Sector Strategy (NIS) following approval by the Council of Ministers. Since its inception, the Insurance Authority had worked on shaping the NIS to address structural priorities in the insurance sector, define a clear roadmap for its future, and strengthen the sector’s role as a key pillar of national economic stability.
In the NIS, the Insurance Authority presents a structured framework composed of 11 strategic and enabling programmes and 72 initiatives. Together, these initiatives are designed to deliver nine strategic promises aligned with Saudi Vision 2030 and its three pillars: A thriving economy, a vibrant society, and an ambitious nation.
The following outlines the NIS’s objectives, initiatives and programmes:
Strategic Objectives
- Strengthening insurance protection for people and businesses.
- Developing a sustainable and efficient insurance market.
- Enabling coverage for national-level risks.
Strategic Promises
The nine strategic promises include expanding the size of the insurance market, increasing insurance penetration in non-oil GDP to 3.6% by 2030 from 2.4% at present, doubling risk-based capital, and increasing the retention ratio in property and casualty insurance.
Additional outcomes include expanding health insurance coverage to 23m beneficiaries, increasing the number of insured vehicles to 16m, creating more jobs in the insurance sector, increasing private sector participation in covering national risks, and implementing over 200 regulatory enhancements to improve the business environment, foster innovation, and strengthen the rights of all contracting parties within the insurance ecosystem.
Key stakeholders
The strategy targets four primary stakeholder groups: People, businesses, insurance industry, and government.
During the strategy’s development, relevant stakeholders were actively engaged to gather insights and align on strategic priorities. These contributions came from government ministries and entities, the private sector, insurance companies, and customers including individuals, small and medium enterprises, and large corporations. Their input played a meaningful role in shaping the final strategy.
Private Sector
The NIS aims to increase private sector participation in covering national risks. This approach helps reduce the financial burden associated with risks that threaten national security, such as geopolitical risks, terrorism, and cybersecurity threats. The strategy provides a framework for collaboration with the private sector to establish joint insurance pools that offer coverage for such risks up to defined limits.
Strategic initiative
To deliver on its promises and targets, the NIS includes 72 initiatives linked to both strategic and enabling programmes. Each initiative is aligned with a specific strategic objective and designed to work in an integrated manner.
The aim is to advance all insurance lines and delivering a transformational impact across the entire insurance ecosystem.
Strategic programmemes
The NIS defines 11 strategic programmes, structured as follows:
- 5 programmes focused on insurance lines.
- 3 programmes related to reinsurance, retention, capacity, and risk.
- 3 enabling programmes covering regulation, technology, data, artificial intelligence, and human capital
The programmes include:
- Health Insurance
- Motor Insurance
- Property & Casualty Insurance (Individuals)
- Property & Casualty Insurance (Corporates)
- Protection & Savings Insurance
- Reinsurance
- Retention & Capacity
- Uninsured Risks
- Regulations & Legislation
- Human Capital
- Technology, Data & Artificial Intelligence
Programme initiatives
Health
The Health Insurance programme includes 11 initiatives aimed at developing the health insurance market, expanding voluntary insurance, strengthening the effectiveness of health insurance mandatory implementation, fostering innovation and sustainability, and improving beneficiary satisfaction.
The initiatives also promote wise healthcare service consumption and reduce fraud, waste, and misuse. In addition, they aim to enhance employers’ ability to absorb insurance costs—particularly SMEs—and expand vertical integration through improved regulatory frameworks, removal of regulatory barriers, applying new supervisory tools, and the introduction of sustainable governance models.
Motor
The strategy identifies nine initiatives under the Motor Insurance programme focused on enhancing pricing efficiency through advanced data capabilities to ensure fair pricing for beneficiaries while maintaining market stability and sustainability.
The initiatives also encourage the adoption of driving behaviour assessment technologies (telematics), enable insurers to design innovative products and solutions, improve claims management, and strengthen operational efficiency and technical capabilities, including underwriting process.
Property & Casualty
A total of 17 initiatives are planned under the Property & Casualty programmes for individuals and corporates. These initiatives aim to establish a centralised policyholder data system to support informed decision-making, create an enabling environment for insurer growth, increase retention ratio, and enhance risk-appetite capacity.
They also focus on building technical skills and capabilities, introducing regulatory frameworks to attract and establish captive insurers, and enabling consumers to access suitable insurance products through effective distribution channels.
Protection & savings
The strategy includes 12 initiatives for the Protection & Savings Insurance programme, playing a vital role in financial education and awareness of this insurance line of business while increasing confidence and demand through targeted financial incentives.
The initiatives also aim to establish a policyholder protection fund, encourage insurers to offer innovative products, enhance financial inclusion, and support employers—particularly SMEs—in offering workplace savings schemes or defined contribution plans as a complement to existing retirement systems.
Reinsurance, Retention, Capacity & Uninsured Risks
Ten initiatives are planned to support the expansion of local reinsurance companies into global markets, increase domestic reinsurance capacity, strengthen capital availability for reinsurance business, and develop national talent to support underwriting expansion and attract specialised expertise.
The initiatives also include regulatory and legislative enhancements to increase reinsurance market attractiveness, improve data availability, raise market maturity, and address uninsured national risks through the establishment of the first dedicated insurance pool. This will enhance risk coverage, increase private sector participation in the national risk management, and reduce pressure on public finances.
Technology, Data & Artificial Intelligence
Achieving the objectives of this programme requires five initiatives focused on modernising and unifying digital infrastructure, accelerating innovation, and promoting the adoption of advanced technologies across the insurance sector.
The initiatives also aim at the development of a sector-wide data and AI strategy to ensure data quality, enable advanced analytics, facilitate secure data sharing, establish a centralised and secure insurance database, and raise digital standards, data protection, and cybersecurity.
Human Capital
Human capital is a key enabling pillar of the strategy. The programme includes six initiatives aimed at raising insurance awareness and literacy among youth, integrating insurance concepts into school curricula through partnerships with educational institutions, private entities, and insurers.
It also focuses on addressing labour market needs by establishing an integrated workforce development ecosystem, offering targeted incentives and professional training programmes, and strengthening collaboration with academic institutions, regulators, and industry leaders to align skills with market demand.
Insurance Authority’s role
Under the NIS, the Insurance Authority says that it will continue to adopt a balanced model that integrates regulation, supervision, oversight, and market development. This model is considered among the most advanced globally, as it provides a unified governance framework that enables the Insurance Authority to develop and expand the insurance sector while ensuring compliance through effective regulatory tools.
The regulator plans to implement more than 200 regulatory enhancements to execute the NIS.
This process has already begun with the issuance of a draft new Cooperative Insurance Law aligned with international best practices and Saudi Vision 2030 objectives, which has been published on the public survey platform. The new law is expected to enhance market stability and growth, promote fair competition, strengthen regulatory oversight, and support innovation and digital transformation across the sector.
The Chairman of the Insurance Authority, Abdulaziz bin Hassan Al-Boug, said in a statement that the NIS aligns with the Saudi leadership’s aspirations and Saudi Vision 2030 objectives. He emphasised the vital role of the insurance sector as a key enabler of the Kingdom’s comprehensive development agenda, supporting economic growth, enhancing protection mechanisms, and reinforcing national economic stability. M