SAMA issues insurance market report
The Saudi Central Bank (SAMA) has issued the fifteenth annual report on the insurance market in the Kingdom of Saudi Arabia. The report highlights the performance of the insurance sector, financial results and its contribution to the Kingdom’s gross domestic product for the year 2021.
According to the report, the insurance sector grew by 8.4 percent in 2021, with gross written premium totalling SAR42 billion, whereas Protection and Saving and Property insurance classes achieved notable increase in written premiums.
Furthermore, the report indicated that the contribution of insurance sector to non-oil GDP decreased slightly by -0.01 percent to reach 1.91 percent, and the overall loss ratio increased to reach 83.4 percent in 2021 compared to 76.7 percent in 2020.
The net loss (after zakat & tax) for the insurance sector reached SAR47 million in 2021 compared to a net profit of SAR1.38 billion in the previous year. The increase in investment income helped offset the impact of operational losses.
Additionally, the report discussed regulatory developments in the insurance sector, including the amendments of certain articles of the Cooperative Insurance Company Control Law, the issuance of a number of regulations and the development of several insurance products. The report noted a two percent increase in Saudisation in 2021 to reach 77 percent.
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