The Central Bank of Saudi Arabia issued the fourteenth annual report on the insurance market in the Kingdom, which highlights the developments and results of the sector during the year 2020, in addition to its financial results and its contribution to the Kingdom’s GDP.
According to the report, the insurance sector witnessed a growth of about 2.3 in 2020 AD, bringing the total written premiums to 38.78 billion riyals, as energy, accidents and liabilities insurance witnessed a remarkable increase in the total written premiums.
The report showed an increase in the insurance sector’s depth of GDP in 2020, to 1.5, compared to 1.3 in 2019, and the overall loss rate of the sector improved positively to 77.5. The Central Bank report indicated that the net profit of the insurance sector (after zakat and tax) increased by about 61.1 during 2020 compared to the previous year, in addition to the increase in the return on assets and the return on shareholders’ equity. Pointing to the increase in the percentage of Emiratisation in insurance companies, reaching 75 in 2020 compared to 74 in 2019.
These positive results come despite the conditions that the sector faced during the period of the Coronavirus pandemic, in which the sector continued to operate effectively by preserving the safety of all dealers and facilitating their insurance dealings, in addition to its initiative to extend vehicle insurance policies for individuals for a period of two months without the insured being incurring any Additional costs electronically. The fourteenth annual report on the insurance market in the Kingdom sheds light on the main regulatory and other developments during the past year, including the issuance of new actuarial business controls, electronic insurance brokerage business rules, the model form of the hidden defects insurance policy, and comprehensive insurance controls on leased vehicles. For individuals, the continued progress in implementing the transition to the International Financial Reporting Standard No. 17 (IFRS17), as well as the increase in mergers and acquisitions activity.
The above-mentioned developments are positive signs for the insurance sector, and are consistent with the efforts of the Central Bank of Saudi Arabia in developing the insurance sector and increasing its contribution further to the economy, with a focus on protecting insurance policy holders and fair pricing of products.
The Saudi Insurance Market Report for the year 2020 can be found on the Central Bank of Saudi Arabia website through the link: (click here).