Insurance

As a result of recent drops in oil prices, Saudi Arabia’s insurers have been operating in a challenging environment. The sector has faced stability issues over the last decade, and smaller players in the market are under increased scrutiny. For the better capitalised insurers, however, the market is a young and increasingly promising one. Insurance penetration in the Kingdom remains low, at approximately 1.7% of GDP according to Fitch credit ratings agency, and business is concentrated in the compulsory segments of motor and health cover. In some areas there have been encouraging signs of growth: data from the Kingdom’s central bank shows that insurance penetration expanded at a compounded annual growth rate of 12% between 2014 and 2019. This chapter contains an interview with Abdulaziz Al Boug, CEO, Tawuniya.