Saudi Arabia | Insurance Marketing Industry Analysis from 2014-2015.

2.  Overview
 Market leaders
 Industry future and challenges
 Q&A
 References

4.  The role of the insurance sector is to be a cornerstone of the
Saudi financial services sector by providing reliable risk
transfer mechanisms, promoting long-term savings, and being
a key enabler of a healthy Saudi economy
 The industry has emerged as one of the fastest growing
insurance industries in GCC and across the world
 Regarding the global economic crisis the insurance industry
has marinated its 30-35% annual growth rate
 The first Saudi Arabian legislation regulating insurance was
enacted in 2003
 The regulator is the Saudi Arabian Monetary Agency (SAMA)

5.  Co-operative Insurance Regulations
 Foreign Ownership
 Management and finances
› Board members, senior managers, mergers and takeovers
of insurance companies must be approved by SAMA.
› Any change of ownership in shares exceeding 5% must be
notified to SAMA.
› SAMA has the right to set minimum and maximum limits of
cover and of premiums
› Retention of risk must not be below 30%

6. 0
2000
4000
6000
8000
10000
AmountinMillions
2010 2011 2012 2013 2014
P&S
Health
General
Years
Gross Written Premiums 2010-2014

7.  Low Penetration (total insurance premiums to gross domestic
product)
 Insurance Density (total insurance premiums to total
population)
 The number of companies is increasing
 Strong government spending
 Economic diversification are likely to increase the number of
persons opting for insurance plans

9.  It was the steppingstone to create a viable insurance industry in
Saudi Arabia
 Providing all types of insurance
 invested heavily in the development of professional Saudi insurance
employees
 Contributed to the education and awareness of the society in
regards to insurance
 Developed new strategies and business plans concentrate on
improvements in customer service, new products, and internal
working environment

10. 25.7%
16.3%
11.5%
46.5%
Others
Companies • Long experience
• New products
• Customer
satisfaction
• Work environment
• Long experience
• Tailor-maid solutions
• International Experience
• Specialized in healthcare

11. 32.7%
20.5%
13.8%
33%
Others
Companies

12. Service&Credibility
Extend of ProductsLow
Low
High
High
Malath
ACIG

14.  Takaful, Islamic insurance will be the fastest growing
segments in the insurance industry in Saudi Arabia
and expected to reach 15 billions in 2015
 The share of gross health insurance is likely to reach
around 65% by 2015
 Non-life penetration will rise from 0.98% in 2011 to
1.25% by 2015
 General insurance sector is expected to grow around
13% from 2011-2015

15.  Issues with Islamic finance
 increasing levels of competition
 Lack of awareness
 No official organization
 No specialized human resources
 Moral Hazards and Frauds
 Too many parties involved in the process
› Official organization (SAMA)
› Insurance companies
› Service providers
› Customers (insured)

17.  http://www.sama.gov.sa/sites/SAMAEN/Insurance/Pages/Ab
outISD.aspx
 http://www.ameinfo.com/198489.html
 http://www.zawya.com/arabic/story.cfm/sidZAWYA20111113
104943/
 “Saudi Arabia Insurance Market Analysis”, Research report by
RNCOS
 http://www.argaam.com/article/articledetail/253804