Saudi insurance spending per capita up 30% to SAR 2,034 in 2023

Per capita spending on insurance in Saudi Arabia grew 30% to SAR 2,034 by the end of 2023, compared to SAR 1,564 a year earlier, data from the Insurance Authority (IA) showed.

The per capita insurance spending is defined as the gross written premiums (GWPs) during the year divided by population number.

Health insurance accounted for 59% of total per capita spending in the sector last year, followed by general insurance with 37%, as well as protection and savings insurance with 4%.

The IA report explained that the insurance penetration, which is represented by the ratio of total insurance premiums to the gross domestic product (GDP), increased to 1.64% in 2023 compared to 1.28% in 2022.

Similarly, the insurance sector's contribution to the non-oil GDP also expanded to 2.38% in 2023 compared to 2.09% in 2022, and it is targeted to increase to 2.4% by 2025 and 4.3% by 2030.

Gross written premiums (GWPs) saw a 23% year-on-year (YoY) increase to SAR 65.5 billion in 2023.

The health insurance’s GWPs stood at SAR 38.6 billion in 2023, up 21% from SAR 31.8 million in 2022. Similarly, general insurance GWPs grew by 24% YoY to SAR 24.3 billion in 2023. Protection and savings insurance premiums also saw 37% YoY growth.

In the general insurance segment, auto insurance premiums accounted for 59%, or SAR 14.3 billion, of total. Property insurance came second with 12%.