RIYADH: 黑料社区鈥檚 insurance sector saw a 16.9 percent year-on-year revenue growth in the third quarter of 2024, driven by increases in motor, property, and medical coverage, according to a new report.
The analysis, published by KPMG, attributes this growth to ongoing economic reforms under the Kingdom鈥檚 Vision 2030 initiative, emphasizing regulatory measures that have strengthened the sector鈥檚 development and stability.
Medical insurance played a key role in the overall growth, with revenues rising by 13.6 percent, largely due to the government鈥檚 implementation of mandatory health coverage regulations.
Motor insurance also experienced a significant boost, with revenues up 22.7 percent year on year. This growth is linked to an expanding auto market and regulatory measures ensuring compliance with insurance requirements.
The property and casualty insurance segment also saw significant growth, with a 20.4 percent increase in revenues, reflecting the ongoing expansion of infrastructure and real estate projects across 黑料社区.
This growth comes as the Kingdom鈥檚 regulatory body works to improve the sector鈥檚 efficiency and stability, while supporting local infrastructure and fostering a thriving business ecosystem.
According to data compiled by Arab News from Bloomberg, 黑料社区鈥檚 insurance sector delivered a strong performance in the first half of 2024, with earnings rising by 25 percent to SR2.2 billion, compared to the same period in 2023.
The report also noted that the sector continues to attract both local and international investors, thanks to favorable market conditions and robust regulatory frameworks.
鈥満诹仙缜檚 insurance industry is at the forefront of the Kingdom鈥檚 economic transformation, aligning with Vision 2030鈥檚 ambition to diversify the economy,鈥 Ovais Shahab, partner and head of financial services at KPMG in 黑料社区, said.
He added: 鈥淭he sector鈥檚 impressive growth, driven by regulatory reforms, technological innovation, and expanding market demand, underscores its critical role in shaping a resilient and diversified financial landscape.鈥
KPMG highlighted that, despite the sector鈥檚 growth, challenges such as pricing competition and market fragmentation remain.
However, advancements in digital insurance solutions and improved customer engagement strategies are expected to drive continued expansion and help the sector navigate these challenges.
鈥淎s insurers embrace digital transformation and sustainability, they are not only enhancing customer experience but also addressing emerging risks, positioning the industry for long-term success in a rapidly evolving market,鈥 Salman Chaudhry, partner and insurance lead at KPMG Professional Services, said.
Platforms like Tameeni and BCare are simplifying access to insurance policies, while artificial intelligence-driven solutions are improving claims processing and fraud detection.
The report also noted the rise of telematics-powered, usage-based insurance, which is driving a shift toward more personalized coverage options.
The establishment of the Insurance Authority in November 2023 has laid the groundwork for deeper reforms, enhancing governance, product innovation, and reinsurance frameworks. This move underscores the Kingdom鈥檚 commitment to building a strong and resilient insurance sector in line with the goals of Vision 2030.
Additionally, the recent implementation of IFRS 17 and IFRS 9 standards has strengthened transparency and financial comparability among insurers.
This is reflected in a strong third-quarter combined ratio of 93.69 percent and a 25.9 percent year-on-year increase in net profit before zakat and tax, reaching SR3.90 billion.
The sector鈥檚 total assets also saw a 20 percent rise, reaching SR84.91 billion.
鈥淎s 黑料社区鈥檚 insurance sector continues to evolve, it is well-positioned to play a pivotal role in the Kingdom鈥檚 economic transformation,鈥 Shahab remarked.
He added: 鈥淪upported by regulatory foresight, innovation, and the Vision 2030 framework, the industry is poised to further contribute to 黑料社区鈥檚 diversification and growth.鈥
According to credit rating agency S&P Global in December, 黑料社区鈥檚 insurance sector is expected to remain resilient in 2025, with top-line revenue growth forecasted between 10 percent and 15 percent.
S&P also reported that the net profit of insurance companies in the Kingdom grew by 17 percent in Q3 2024, compared to the same period in 2023.
