Tawuniya holds largest market share; sees healthy, stable growth in coming years: CEO

The Company for Cooperative Insurance's (Tawuniya) CEO Abdulaziz Al-Boug

The Company for Cooperative Insurance (Tawuniya) has the largest market share in the insurance sector, given the initial indicators and announced results of rival companies so far based on the volume of written premiums, said CEO Abdulaziz Al-Boug.

He told Argaam that the company's market share for 2022 cannot be determined currently as financial results were not published by all insurance companies.

The CEO also indicated that the company's positive results were achieved as a result of applying a sound underwriting policy and an accurate pricing methodology using artificial intelligence models, which the company expanded its utilization significantly in 2022. Digital sales, in turn, saw a five-fold year-on-year (YoY) hike.

He explained that the increase in profit was backed by the rise in written premiums, paired with higher net investment income and surplus of insurance operations.

In addition, Tawuniya achieved an exceptional growth of 40% YoY in total written premiums to exceed SAR 14.3 billion in 2022 — an all-time high, said the CEO.

This was because of a 27% YoY jump in the medical segment’s written premiums, a 50% YoY uptick in the number of insured vehicles, in addition to 69% and 33% YoY growth in the motor as well as the property and casualty insurance segments, respectively.

The creation of new products and services that enhanced customer confidence also reflected positively on Tawuniya’s 2022 growth.

Al-Boug added that this affirmed the market's confidence in Tawuniya's capabilities to underwrite complex and large insurance policies.

Furthermore, the company has successfully reduced the rate of insurance losses, improved the governance and automation of medical claims management processes, and managed the documentary cycle more effectively. This is in addition to the remarkable improvement in the efficiency of general and administrative expenses, he continued.

He also highlighted the continued growth in the health insurance sector with the increase in the number of insured persons. This is especially amid increased insurance policies of Umrah pilgrims, and the provision of insurance solutions as part of mega projects introduced under the Kingdom's Vision 2030, which boosted the growth of the property and casualty insurance segment.

Tawuniya focuses on creating solutions and programs that attract new segments, such as the Tawuniya Vitality and Tawuniya Drive programs, which had a positive impact on the health and motor insurance segments, according to the top executive.

He said that Tawuniya aims to be the top insurer in the region, amid the continued implementation of the programs and initiatives drawn up under its 2025 strategy, which contributed to achieving these exceptional results in 2022.

Al-Boug expected Tawuniya to maintain healthy and steady growth during the coming years, in line with its ambitions and the vision it set.

The insurer reported a net profit of SAR 391 million in 2022, an increase of 47% from SAR 266.6 million in the year-ago period. Q4 net profit stood at SAR 68.9 million, according to Argaam's data.