Latest news with #InsuranceAuthority
Argaam
2 hours ago
- Business
- Argaam
Fitch expects M&A activity to accelerate in Saudi insurance sector
Fitch Ratings expects insurance market consolidation in Saudi Arabia to accelerate in the next two years, driven by tighter capital rules and weak underwriting profitability due to intense price competition. Some smaller insurers may struggle to meet new requirements or stay profitable, leading to mergers and acquisitions (M&As). Regulatory oversight has increased since the Insurance Authority (IA) took over the sector's supervision from the Saudi Central Bank (SAMA) and Council of Health Insurance in 2023. The IA plans to introduce a risk-based capital regime in 2027 to strengthen insurers' balance sheets. It is also pushing for improving underwriting discipline and better regulatory reporting. Overall, these measures will be credit positive for the sector in the long term, Fitch said. However, they will increase insurers' regulatory compliance costs, particularly during implementation, which will add to pressure on profitability in the short term. 'We expect smaller insurers to be more affected by the increased capital demands and compliance costs given their lower economies of scale,' the rating agency said. The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia for Cooperative Insurance Co. led the market with a combined 52% share in 2024.
Zawya
26-05-2025
- Business
- Zawya
Saudi Insurance Authority strips licenses from 28 insurance firms in sector shake-up
RIYADH — The Insurance Authority (IA) has issued final decisions to revoke the licenses of several insurance and brokerage companies operating in Saudi Arabia, as part of broader corrective measures to stabilize and enhance the sector's performance and credibility. The decisions, based on the Cooperative Insurance Companies Control Law and relevant regulations, follow a series of actions initiated on August 28, 2024, and are intended to safeguard the rights of insured individuals and beneficiaries while supporting financial stability. Among the companies whose licenses have been revoked are Shire Insurance Agency Company, Al-Bulurat Insurance Brokerage Services Company, Al-Sabil Asia Insurance and Reinsurance Brokerage Company, Al-Aman Insurance and Reinsurance Brokerage Company, and Future Vision Insurance Brokerage Company. Additional firms affected include Aman Gate Insurance Agency Company, Laval Insurance Brokerage Company, Ahed Saudi Insurance Agency Company, Al-Rabt Saudi Insurance Brokerage Company, Fursan Insurance Agency Company Limited, Saudi Agents Insurance Agents Company, Insurance Management Company for Insurance Agency, Saudi Shield Insurance Agency Company Limited, Panorama Elite Insurance Agency Company, and Takaful Amanah Cooperative Insurance Agency Company Limited. Earlier, Eng. Naji Al-Tamimi, CEO of the Insurance Authority, stated that the IA is currently evaluating the possibility of removing health insurance pre-approval systems that link beneficiaries, hospitals, and insurers. While intended to ensure medical necessity and reduce health risks, the approval process has been criticized for causing delays that harm beneficiaries. Al-Tamimi added that the Authority will soon begin publishing performance indicators, starting with the complaint rate relative to the number of individual health and motor insurance policyholders at each insurance company. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
25-05-2025
- Business
- Saudi Gazette
Saudi Insurance Authority strips licenses from 28 insurance firms in sector shake-up
Saudi Gazette Report RIYADH — The Insurance Authority (IA) has issued final decisions to revoke the licenses of several insurance and brokerage companies operating in Saudi Arabia, as part of broader corrective measures to stabilize and enhance the sector's performance and credibility. The decisions, based on the Cooperative Insurance Companies Control Law and relevant regulations, follow a series of actions initiated on August 28, 2024, and are intended to safeguard the rights of insured individuals and beneficiaries while supporting financial stability. Among the companies whose licenses have been revoked are Shire Insurance Agency Company, Al-Bulurat Insurance Brokerage Services Company, Al-Sabil Asia Insurance and Reinsurance Brokerage Company, Al-Aman Insurance and Reinsurance Brokerage Company, and Future Vision Insurance Brokerage Company. Additional firms affected include Aman Gate Insurance Agency Company, Laval Insurance Brokerage Company, Ahed Saudi Insurance Agency Company, Al-Rabt Saudi Insurance Brokerage Company, Fursan Insurance Agency Company Limited, Saudi Agents Insurance Agents Company, Insurance Management Company for Insurance Agency, Saudi Shield Insurance Agency Company Limited, Panorama Elite Insurance Agency Company, and Takaful Amanah Cooperative Insurance Agency Company Limited. Earlier, Eng. Naji Al-Tamimi, CEO of the Insurance Authority, stated that the IA is currently evaluating the possibility of removing health insurance pre-approval systems that link beneficiaries, hospitals, and insurers. While intended to ensure medical necessity and reduce health risks, the approval process has been criticized for causing delays that harm beneficiaries. Al-Tamimi added that the Authority will soon begin publishing performance indicators, starting with the complaint rate relative to the number of individual health and motor insurance policyholders at each insurance company.
Argaam
19-05-2025
- Business
- Argaam
Saudi insurance spending per capita up 16% to SAR 2,367 in 2024
Per capita spending on insurance in Saudi Arabia grew 16% to SAR 2,367 by the end of 2024, compared to SAR 2,035 a year earlier, data from the Insurance Authority (IA) showed. The per capita insurance spending is defined as the gross written premiums (GWPs) during the year divided by population. Per capita spending on insurance in Saudi Arabia grew at a compound annual rate (CAGR) of 21.2% over the last five years. Health insurance accounted for 55% of total per capita spending in the sector last year, followed by general insurance with 34%, as well as protection and savings insurance with 10%. The IA report explained that the insurance penetration, which is represented by the ratio of total insurance premiums to the gross domestic product (GDP), increased to 1.87% in 2024, compared to 1.64% in 2023. Similarly, the insurance sector's contribution to the non-oil GDP also expanded to 2.59% in 2024 compared to 2.38% in 2023, and it is targeted to increase to 4.3% by 2030. Last year witnessed the issuance of several regulations, guidelines, and standardized policies aimed at keeping pace with developments in the sector and the broader economy. Notable among these were: The issuance of the Unified Health Insurance Policy for Domestic Workers, which sets the minimum mandatory health coverage for this category. The Unified Professional Liability Insurance Policy for entities inspecting compliance with the Saudi Building Code. The Unified Civil Liability Insurance Policy for crowded venues and high-risk activities. Per Capita Spending on Insurance Since 2010 (SAR) Year General Health Protection & Savings Total 2010 244 315 35 594 2011 278 342 32 652 2012 308 386 30 724 2013 383 430 28 841 2014 450 511 29 990 2015 523 602 33 1158 2016 541 587 33 1161 2017 502 585 35 1121 2018 419 595 33 1048 2019 417 657 33 1107 2020 414 645 36 1095 2021 435 717 49 1200 2022 576 933 55 1564 2023 754 1200 80 2035 2024 814 1313 239 2367 GWPs saw a 16% year-on-year (YoY) increase to SAR 76.1 billion in 2024. Health insurance GWPs stood at SAR 42.2 billion in 2024, up 9% from SAR 38.6 billion in 2023. Similarly, general insurance GWPs grew by 8% YoY to SAR 26.2 billion in 2024. Protection and savings insurance premiums saw a 200% hike YoY, accounting for 10.1% of GWPs up from 3.9% in 2023. GWPs by Insurance Segment in 2024 (SAR bln) Type 2023 2024 Change value Change (%) Healthcare 38.6 42.2 + 3.6 +9% General 24.3 26.2 + 1.9 +8% Protection & Savings 2.6 7.7 + 5.1 +200% Total 65.5 76.1 +10.7 +16% In the general insurance segment, auto insurance premiums accounted for 53%, or SAR 13.9 billion, of total. General accidents & liability insurance came second with 13%.
Arabian Business
09-05-2025
- Business
- Arabian Business
Saudi insurance sector records $960m profit in 2024
The Insurance Authority has issued the Saudi Insurance Market Report, which highlights the Insurance sector's developments and financial performance throughout 2024 and its contribution to the national GDP. According to the authority, the insurance sector recorded growth in total written premiums, with notable increases in protection and savings insurance. The report revealed an increase in the insurance sector's contribution to the non-oil GDP, reaching 2.59 per cent in 2024. Saudi insurance sector Additionally, it indicated that the insurance sector achieved profits of SR3.6bn ($960m) in 2024, compared to a net profit of SR3.2bn ($853m) in 2023, driven by improved insurance service results and more substantial investment income. The Saudi Insurance Market Report also detailed key regulatory developments, including the issuance of several regulations and the introduction of a standard policy for various insurance products. These efforts align with the authority's commitment to advancing the sector, enhancing its economic contribution, and prioritising policyholders.
