Report Overview

Saudi Arabia Motor Insurance Market – Industry Trends & Forecast Report, 2029

Saudi Arabia motor insurance market size was estimated at USD 7.95 billion in 2022. During the forecast period between 2023 and 2029, Saudi Arabia motor insurance market size is projected to grow at a CAGR of 4.07% reaching a value of USD 10.45 billion by 2029. In today's world, the number of crashes, traffic mishaps, and accidents is always increasing. All of these factors contribute to the determination of automobile insurance premiums. People in large urban areas, for example, are willing to pay a high premium due to their substantial discretionary income. Texting, talking, or doing other activities while driving is a problem in every city and can be a major cause of accidents. Auto insurance pays for an injured person's medical treatment, lost wages, vehicle repair, and any property damage caused by an accident. Therefore, customers are purchasing auto insurance to mitigate financial losses, which is driving up demand during the forecast period.

Saudi Arabia Motor Insurance Market - Overview

Cars, trucks, automobiles, motorbikes, and other vehicles are all covered by motor insurance. Motor insurance is popular among consumers because it provides financial protection in the event of vehicle damage as well as harm to other drivers, passengers, or pedestrians (i.e., third-party cover). Therefore, adequate auto insurance is both a legal need and a necessity.

Growth Drivers

Development of Third-Party Liability Insurance

Because of people's ignorance, collisions, accidents, and other dangers or injuries to third parties occurred. The basic insurance policy has nothing to do with car damage, but third-party liability insurance compensates the owner of the car for any property damage caused to third parties who are not covered by the policy. This policy protects you from financial loss if third-party property damage, disability, injuries, or death occurs to walkers, drivers, or passengers in other vehicles. Nonetheless, this type of planning helps to protect the interests of third parties. All of these factors are projected to boost the motor insurance sector significantly during the forecast period.

Restraints

Rising Cyberattacks and Associated Threats

Insurance firms are always dealing with numerous cases of fraud and are not always as successful as they would want. As other industries, such as banking, become safer, hackers' emphasis shifts to more vulnerable target organizations. Insurers retain a massive database of Personality Identifiable Information (PII) about policyholders, including names, birthdates, social security numbers, street and email addresses, health data, and work data, such as income. Personal information on policyholders' personal property, such as homes and cars, might potentially be a target.

Saudi Arabia Motor Insurance Market

Segmental Coverage

Saudi Arabia Motor Insurance Market - By Type

On the basis of type, Saudi Arabia motor insurance market is divided into Liability Coverage and Comprehensive segments. The liability coverage segment is a higher contributor to the growth of Saudi Arabia motor insurance market. The primary benefits of this coverage type are that it compensates for any third-party damage, such as disability, death, or property loss. Third-party liability insurance protects you legally and financially. A major factor for the rising desire for third-party liability coverage insurance is the potential for automobile accidents and third-party damage.

Saudi Arabia Motor Insurance Market - By Distribution Channel

On basis of distribution channel, Saudi Arabia motor insurance market is divided into Agents, Brokers, Banks, and Online segments. During the forecast period, the agents segment is expected to record the fastest growth in the Saudi Arabia motor insurance market. This is due to the ease of purchasing insurance policies, insurance agents guide discounts, offers, and plans, bolstering consumer confidence in purchasing motor insurance.

Competitive Landscape

Major players in the Saudi Arabia motor insurance market include Bupa Arabia for Cooperative Insurance, Tawuniya Insurance, Allianz Saudi Fransi Cooperative Insurance Co., Malath Cooperative Insurance & Reinsurance Co., MetLife AIG ANB Cooperative Insurance Company, Gulf General Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company (SAICO), Aljazira Takaful Taawuni Company, Wataniya Insurance Company, MedGulf Allianz Takaful, Al Rajhi Takaful, AXA Cooperative Insurance Company, Arabian Shield Cooperative Insurance Company, Chubb Arabia Cooperative Insurance Company, and Arabian Gulf Cooperative Insurance Company. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In January 2023 – The Saudi Arabian Monetary Authority (SAMA), or the Saudi Central Bank, amended the Unified Compulsory Motor Insurance Policy including updating the exceptions and transferring of rights in recovery cases.

Scope of the Report

By Type

• Third-Party Liability

• Comprehensive

By Distribution Channel

• Agents

• Brokers

• Banks

• Online

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growth in the Saudi Arabian economy, leading to an increase in the number of vehicles.
         2. Mandatory motor insurance laws in Saudi Arabia make it compulsory for all vehicle owners to have insurance.
      2. Restraints
         1. High competition among insurance providers, leads to lower profit margins
      3. Opportunities
         1. Increasing demand for value-added services such as roadside assistance, personal accident cover, and other add-ons, leading to higher revenue streams for insurance providers.
      4. Challenges
         1. High level of fraud and claims leakage
         2. Unfavorable regulatory changes and policy reforms, leading to increased compliance costs and operational challenges
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Third-Party Liability
         2. Comprehensive
      2. By Distribution Channel
         1. Agents
         2. Brokers
         3. Banks
         4. Online
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Motor Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bupa Arabia for Cooperative Insurance
   2. Tawuniya Insurance
   3. Allianz Saudi Fransi Cooperative Insurance Co.
   4. Malath Cooperative Insurance & Reinsurance Co.
   5. MetLife AIG ANB Cooperative Insurance Company
   6. Gulf General Cooperative Insurance Company
   7. Saudi Arabian Cooperative Insurance Company (SAICO)
   8. Aljazira Takaful Taawuni Company
   9. Wataniya Insurance Company
   10. MedGulf Allianz Takaful
   11. Al Rajhi Takaful
   12. AXA Cooperative Insurance Company
   13. Arabian Shield Cooperative Insurance Company
   14. Chubb Arabia Cooperative Insurance Company
   15. Arabian Gulf Cooperative Insurance Company
   16. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Insurance Segmentation 

Figure 2       Saudi Arabia Motor Insurance Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Motor Insurance Market Size, By Value (USD Million), 2019–2029         

Figure 5       Saudi Arabia Motor Insurance Market Share, By Type, By Value, 2019–2029 

Figure 6       Saudi Arabia Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029 

List of Tables

Table 1        Saudi Arabia Motor Insurance Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Motor Insurance Market Size, By Type, By Value, 2019–2029

Table 3        Saudi Arabia Motor Insurance Market Size, By Distribution Channel, By Value, 2019–2029

Table 4        Bupa Arabia for Cooperative Insurance Company Overview

Table 5        Bupa Arabia for Cooperative Insurance Financial Overview

Table 6        Tawuniya Insurance Company Overview

Table 7        Tawuniya Insurance Financial Overview

Table 8        Allianz Saudi Fransi Cooperative Insurance Co. Company Overview

Table 9        Allianz Saudi Fransi Cooperative Insurance Co. Financial Overview

Table 10      Malath Cooperative Insurance & Reinsurance Co. Company Overview

Table 11      Malath Cooperative Insurance & Reinsurance Co. Financial Overview

Table 12      MetLife AIG ANB Cooperative Insurance Company - Company Overview

Table 13      MetLife AIG ANB Cooperative Insurance Company Financial Overview

Table 14      Gulf General Cooperative Insurance Company - Company Overview

Table 15      Gulf General Cooperative Insurance Company Financial Overview

Table 16      Saudi Arabian Cooperative Insurance Company (SAICO) Company Overview

Table 17      Saudi Arabian Cooperative Insurance Company (SAICO) Financial Overview

Table 18      Aljazira Takaful Taawuni Company - Company Overview

Table 19      Aljazira Takaful Taawuni Company Financial Overview

Table 20      Wataniya Insurance Company - Company Overview

Table 21      Wataniya Insurance Company Financial Overview

Table 22      MedGulf Allianz Takaful Company Overview

Table 23      MedGulf Allianz Takaful Financial Overview

Table 24      Al Rajhi Takaful Company Overview

Table 25      Al Rajhi Takaful Financial Overview

Table 26      Arabian Gulf Cooperative Insurance Company: Company Overview

Table 27      Arabian Gulf Cooperative Insurance Company Financial Overview

Table 28      Other Prominent Players Company Overview

Table 29      Other Prominent Players Financial Overview