Individual spending rate on insurance in the Kingdom increased to 2034.5 riyals during 2023

The Saudi Insurance Market Report issued by the Insurance Authority showed an increase in insurance density in the Kingdom by 30.1% to 2034.5 riyals per person during 2023 compared to 2022, which was at 1564.2 riyals per person.

Insurance density is defined as the individual spending rate on insurance (total insurance premiums subscribed divided by the population). According to the report, the cost of health insurance per person increased during 2023 to 1,200.48 riyals compared to 2022, which was 933.13 riyals, an increase of 28.6%, while general insurance recorded an increase during the past year to 754.23 riyals compared to 576.14 in 2022, an increase of 30.9%, and protection and savings insurance came during the past year at 79.74 riyals compared to 2022, which was 54.93 riyals, an increase of 45%. The average compound annual growth rate of the average individual spending on insurance services amounted to 14.2% during the past 5 years. As for the depth of insurance, it increased during 2023 to reach 1.64% compared to 1.28% in 2022, which is the ratio of total insurance premiums subscribed to the gross domestic product. At the same time, the depth of insurance from the non-oil GDP reached 2.38% in 2023 compared to 2.09% in 2022. Non-oil insurance is defined as the ratio of total insurance premiums subscribed to the non-oil GDP. It is noteworthy that the targets of the Kingdom’s Vision 2030 include reaching the depth of the insurance sector during 2025 to 2.4%, which the insurance sector is very close to achieving before 2025, which reflects the success of the plans of the insurance sector and its companies. The vision also includes targeting 4.3% for the sector from the non-oil GDP in 2030, which is expected to reach before 2030.