Prime Highlights:
- Saudi Arabia is becoming a key hub for international insurance and reinsurance companies, attracting growing interest from foreign investors.
- The workforce in the insurance sector is set to nearly double from 18,000 to 39,000, reflecting strong growth plans.
Key Facts:
- The Saudi insurance market grew over 17% in 2024, with a penetration rate of 2.6%.
- Riyadh Reinsurance Co. launched with SR550 million ($146.6 million) in capital, planning to increase it to SR800 million within four years.
Background:
Saudi Arabia is becoming a popular market for international insurance and reinsurance companies, as more foreign firms show interest in the Kingdom.
The Saudi Insurance Authority (SIA) revealed that it is currently in discussions with four foreign companies looking to enter the reinsurance market. Naji Al-Tamimi, Chairman of the Authority, stated on the sidelines of the Global Insurance Conference and Exhibition that “the reasonable regulatory framework and excellent digital infrastructure have made the Saudi market inherently attractive.” He emphasized that the Authority actively encourages international investors and branches of foreign companies to explore opportunities in the Kingdom.
Saudi Arabia plans to introduce the Risk-Based Capital system in January 2027, after a pilot phase in 2026. In 2024, the Saudi insurance market grew over 17 percent, with a 2.6 percent penetration rate. Abdulaziz Al-Bouq, Chairman of the Authority’s Board of Directors, said the Kingdom aims to double the premium value by 2030, highlighting its ambitious growth plans.
The reinsurance sector is also attracting new players. Fahd Al-Husni, CEO of Riyadh Reinsurance Co., said the local reinsurance market is expected to reach SR20 billion by 2030. Riyadh Re recently launched after receiving its final license from the Insurance Authority, joining other companies like Saudi Reinsurance Co.
The company began with a capital of SR550 million ($146.6 million) and plans to increase it to SR800 million within four years, focusing on the local market first before expanding internationally.
The CEO of the Co. for Cooperative Insurance said the company is awaiting approvals to start reinsurance activities.
With strong regulations, digital infrastructure, and growth plans, Saudi Arabia is becoming a key hub for insurance and reinsurance.
