Saudi Arabia's Council of Ministers have approved the National Insurance Sector Strategy, developed by the Insurance Authority to unlock the sector's full potential and position the Saudi insurance market among the world's fastest-growing and most advanced.
The Chairman of the Insurance Authority, Abdulaziz bin Hassan Al-Boug, said in a statement that the Council’s approval reflects the continued and unwavering support the insurance sector receives from the Kingdom’s leadership.
3 core goals
He added that the Strategy aligns with the leadership’s aspirations and Saudi Vision 2030 objectives, and is built around three core strategic goals: strengthening insurance protection for people and businesses, developing a sustainable and efficient insurance market, and enabling coverage for national-level risks.
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.
On his part, the Insurance Authority’s CEO, Eng. Naji Al-Faisal Al-Tamimi, described the Strategy as a foundational pillar in achieving the objectives of Saudi Vision 2030 and the Financial Sector Development Programme.
Roadmap
He said that the Strategy will serve as a comprehensive roadmap guiding the Saudi insurance sector over the coming years, strengthening protection frameworks, reinforcing economic stability, and supporting sustainable development in line with the Kingdom’s global economic standing.
Initiatives
Addressing the key enablers underpinning the Strategy, Mr Al-Tamimi stated that the Insurance Authority will work closely with partners and stakeholders to achieve the strategy’s objectives through a structured framework comprising 11 strategic and enabling programmes and 72 initiatives. Together, these initiatives are designed to deliver nine strategic promises aligned with Saudi Vision 2030 and represent the most significant expected outcomes of the Strategy, reflecting the insurance sector’s contribution to the Kingdom’s broader development.
Commitments
Among the most prominent commitments are 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, improving retention rates in property and casualty insurance, expanding health insurance coverage to 23m beneficiaries, increasing the number of insured vehicles to 16m, and creating additional employment opportunities for national talent within the insurance sector.
It is worth noting that the development of the National Insurance Sector Strategy is one of the core mandates for which the Insurance Authority was established under a Council of Ministers Resolution dated 15 August 2023, backed by the Financial Sector Development Programme.