A report from A.M. Best notes that “Saudi Arabia’s insurance market remains one of the main markets within the Gulf Cooperation Council (GCC), with premiums expected to surpass the United Arab Emirates over the next five years.
“The insurance market saw premiums expand significantly in 2013, and although growth is expected to slow in 2014, it remains above historical levels. Growth in recent years has been mainly driven by compulsory motor and medical, which allows insurers to develop a profile in the market and therefore is fraught with intense competition.
“On the downside, the Saudi market saw a substantial loss-making year in 2013, stemming mainly from inadequate pricing and material reserve deficiencies in the motor and medical portfolios. Most of the market’s premium growth comes from rate increases in the medical and motor lines of business.
“Rates are likely to continue rising, as actuaries will need to review technical pricing over the coming years. Since there has been a material adjustment in 2013 rates will increase more slowly from 2014 onward.
A full copy of the report is available.
Source: A.M. Best