The recently-regulated Saudi insurance sector has blossomed so quickly in the past five years that it may even be ripe for a period of consolidation.
May 17, 2011
17 May 2011 The recently-regulated Saudi insurance sector has blossomed so quickly in the past five years that it may even be ripe for a period of consolidation.
The Saudi insurance sector, which was unregulated till 2002, has grown leaps and bounds in a very short space of time. With a young, growing population, compulsory insurance in a few areas and the prospects of home insurance hovering on the horizon, the insurance sector seems the place to be in Saudi Arabia.
There is still plenty to hold it back, though, namely the conservative asset management tendencies of the insurance players, and the cultural reluctance to insure life and businesses.
But with the Saudi authorities firmly behind promoting the sector, and business needs for insurance rising, the market is set to grow at a fast clip.
Article The Saudi insurance sector has grown at an astonishing rate over the past five years. The Saudi government has pieced together an impressive reform policy to regulate the insurance sector, and that has seen insurance premiums rise from SAR3.1 billion in 2005 to SAR10 billion by 2009, according to the Saudi Arabian Monetary Agency (SAMA) data.
