Saudi insurance density surges 23 percent

Saudi Arabia's insurance density (per capita expenditure on insurance) has increased by 23 per cent from SR 358 ($95.4) in 2007 to SR 440 ($117.3) in 2008, and is again poised to achieve a healthy growth rate this year, said an expert. According to Buruj Co-operative Insurance Company, the Kingdom's insurance density is poised to be sustained this year with the introduction of a new policy in compulsory motor insurance and cooperative health insurance.The steady performance of Saudi economy amid financial downturn will further stimulate the ongoing growth trend in the Kingdom's insurance sector, creating perfect backdrop for key players such as Buruj to consolidate their portfolio and reinforce strategic market advantages, said Samer Kanj, general manager, Buruj Cooperative Insurance. Kanj said, 'Saudi Arabia remains as our primary focus because of the immense growth potential here.Our goal is to firmly establish the Buruj brand as a premier insurance provider by delivering premium value in all our products and services in the Kingdom.' 'Moreover, we intend to maintain our strong reputation in satisfying the security needs of individuals and businesses by helping them manage their everyday risks, recover from unpredicted events, and reach their goals and aspirations,' he added.The Saudi insurance market has also reported a 27 per cent growth in gross written premiums, reaching SR 10.9 billion in 2008 from SR 8.6 billion in 2007 and remains on track to maintain growth trend. 'Buruj will continue to strengthen its presence in Saudi Arabia's insurance market by regularly re-evaluating and consolidating its premium selection of insurance products and services.' 'The huge population of the country offers a great opportunity to explore innovative insurance solutions to address the diverse requirements of niche markets in the country.' 'Moreover, the favourable market conditions have also been influenced by the excellent performance of the country's economy as well as the introduction of new policies such as the compulsory motor insurance and cooperative health insurance,' Kanj added. Buruj said it will benefit from its ties with Saudi Pearl Insurance Company, a Bahraini insurance company that has extensive experience in the insurance business in Saudi Arabia, where it offers all classes of insurance products. Saudi Pearl's parent company, Gulf Insurance Company, is a major shareholder of Buruj Cooperative Insurance Company.