Saudi Arabia’s insurance companies now manage investment portfolios worth around SAR60 billion, after the value doubled over the past four years, according to comments by MedGulf Insurance CEO Omar Al Mahmoud.
Speaking at a virtual workshop organised by the Eastern Chamber, Al Mahmoud said the country’s insurance market expanded from SAR42 billion in 2021 to SAR84 billion in 2025. The market includes around 11 million insured vehicles and 14 million people with medical insurance.
Despite the sector’s rapid growth, profitability remains a key challenge. Total industry profits reached SAR1.9 billion, representing a margin of 2%, which Al Mahmoud linked closely to investment portfolio performance.
He expects margins to improve as regulation and governance develop, particularly following the establishment of the Insurance Authority as a unified regulator.
Mandatory insurance has also widened the market, while comprehensive vehicle insurance still accounts for only 20% to 25% of policies. Insurers offer between 70 and 80 products covering risks, homes and commercial facilities.
Al Mahmoud also pointed to opportunities for establishing reinsurance companies in Saudi Arabia, as well as potential market consolidation and the entry of specialised providers. Digital channels account for around 85% of individual insurance policies, while insurance coverage among small and medium-sized companies is estimated at SAR80 billion.
Source: Jawlah
