Saudi Arabia

With the population of Makkah expected to double over the next 15 years and the number of pilgrims forecast to continue rising steadily, there is one central theme when it comes to development planning: the need to expand capacity.

The reasons for the low insurance take-up seen across the MENA region are well documented: a low level of consumer awareness, cultural resistance and the relatively underdeveloped financial sectors of some nations are frequently cited to explain the penetration rate of around 1%, compared to a global average estimated by PwC at 6.5% in 2012....

While the concept of insurance sold through banks dates back to the 19th century, the present model of bancassurance – which has expanded beyond consumer credit, currency theft and home insurance to include such products as savings insurance and annuity investment contracts – was developed in advanced insurance markets in the 1980s. It was...

The mixed results of the local insurance industry in 2013, which saw 18 of the 33 licensed companies post a net loss, has led to much speculation regarding the future of the sector. The last two years have seen increasing price competition as Saudi Arabia’s insurers have jostled for market share – which in some cases has led them down a path...