Saudi insurance sector likely to hit $12.8 bln in 2024: Alpen Cap

Saudi Arabia’s insurance sector is expected to grow at a compound annual growth rate (CAGR) of 5% to $12.8 billion (SAR 48 billion) between 2019 and 2024, according to a recent report released by Alpen Capital, the leading Investment Bank providing solutions to Institutional and Corporate clients in the GCC.

Life insurance is projected to grow at a CAGR of 4.2% to $400 million by 2024, while non-life insurance is forecast to rise at a CAGR of 5% to $12.4 billion in 2024.

“Saudi Arabia is expected to benefit from the significant development of infrastructure, coupled with new business and a reformed tourism program,” Alpen Capital added.

Moreover, the rapid increase in the number of women drivers, which is likely to grow by 3 million in 2020, is expected to facilitate the growth of Saudi’s insurance segment.

It is worth mentioning that Saudi Arabia is working on more than 5,000 projects valued at $1.6 trillion that will promote the insurance market across the Kingdom, it said.

However, the insurance industry in the GCC is projected to grow at a CAGR of 4.3% to $36.1 billion in 2024 from $29.2 billion in the running year.

“Sustained economic growth, increase in population and substantial infrastructure development are among the leading factors that will facilitate the sector’s growth,” Alpen Capital added.