Saudi Central Bank: 8.4% Growth in the insurance sector in 2021
The Saudi Central Bank (SAMA) issued the 15th annual report on the insurance market in the Saudi Arabia. The report highlights the performance of the insurance sector, financial results and its contribution to the Kingdom's gross domestic product for the year 2021.
According to the report, the insurance sector grew by 8.4% in 2021, with total Written Premium SAR 42 billion, whereas Protection and Saving and Property insurance classes achieved notable increase in written premiums, Saudi press agency (spa) reported.
Furthermore, the report indicated that the contribution of the insurance sector to non-oil GDP decreased slightly by -0.01% to reach 1.91%, and the overall loss ratio increased to reach 83.4% in 2021 compared to 76.7% in 2020.
The Net Loss (after zakat & tax) for the insurance sector reached SAR 47 million in 2021 compared to a Net Profit of SAR 1.38 billion in the previous year. The increase in investment income helped offset the impact of operational losses.
Additionally, the report discussed regulatory developments in the insurance sector, including the amendments of certain articles of the Cooperative Insurance Company Control Law, the issuance of a number of regulations and the development of several insurance products. The report noted a 2% increase in Saudization in 2021 to reach 77%.
