MANAMA: Saudi Arabia's newly-liberalised insurance market comes under the spotlight today with estimates that the market currently worth around $1.5 billion annually could soar to $8bn in the next 10 years.
An elite speaker faculty of key international and regional professionals will be taking part in the Second Saudi Insurance Summit at the Jeddah Hilton Hotel today and tomorrow. The summit, organised with the support of Jeddah governor Prince Mishaal bin Majed bin Abdulaziz, is expected to be attended by more than 300 insurance professionals, regulators and key industry players.
The Saudi Arabian Monetary Agency recently reported the insurance market grew 35pc last year alone. Gross premiums rose to $1.8bn from $1.3bn in 2005.
General insurance premiums, which represented 65pc of the insurance market, increased by 25pc to $1.2bn last year compared with $959 million in the previous year.
It is health insurance that is attracting the most attention - representing 32pc of the insurance market - and saw premiums increased by 57pc to $589m last year compared with $375m in 2005. This growth is mainly driven by the decision to make health insurance mandatory for all expatriate workers as well as favourable economic conditions.
New laws require the kingdom's 7m expatriates to prove health insurance cover is provided to them by their employers. The first phase demanded compliance from companies with over 500 employees by July this year. Remaining companies have until March next year to ensure their workers are covered.
The opening up of Saudi Arabia's insurance sectors has injected hundreds of millions of dollars into the market with more to come through new company licensing and public offerings.
"The new laws have led many in the industry to forecast excellent growth in the non-life sector in Saudi Arabia with predictions of $4bn growth by 2009 being touted," said Deep Marwaha, Senior Conference Manager, of IIR Middle East, organisers of the Second Saudi Insurance Summit
"Within this high growth market, the landscape is shifting dramatically," said Marwaha.
"The Second Saudi Insurance Summit aims to ensure that key players keep abreast of new developments in what is a breakneck business environment."
