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According to SAMA, the Saudi insurance market grew by 2.3 % in 2020

Princess Tarfa

As per the Saudi Central Bank's (SAMA) 14th annual survey on the Saudi insurance industry, which has been released on Thursday. The insurance sector in Saudi Arabia also expanded by 2.3 percent in 2030, with overall written premiums hitting SR38.78 billion.

The article also highlights the success of Saudi Arabia's insurance market in the year 2020, and the sector's addition to the Kingdom's GDP (GDP).

Written premiums in the Energy and Accident & Liability insurance groups have also increased significantly. The sector's penetration level rose from 1.3 percent in 2019 to 1.5 percent in 2020. In terms of underwriting efficiency, the net loss ratio increased to 77.5 percent.

Insurance net profit (after zakat and tax) rose by 61.1 percent over the past year's equivalent figure, which in turn increasing the sector's return-on-assets and return-on-equity ratios.

According to the survey, the total Saudization ratio rose from 74 percent in the year 2019 to 75% in 2020. Amid the industry's difficulties during the COVID-19 pandemic crisis, these optimistic results were achieved.

The report also presents a major regulatory and many other innovations that occurred throughout the year, such as the issuance of new Actuarial Work Regulations, laws governing the activities of insurance aggregators, and standard Policy for Inherent Defects Insurance and Rules for Comprehensive Insurance of Motor Vehicles Financially Leased to Individuals, in terms of ongoing progress in IFRS17 application.

 

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