Additionally, many of those insurers, as well as others, earned a profit in 2016 compared with 2015.
“One of the biggest headline numbers is the improvement in overall profitability,” said Siddiqui. “The overall profitability for the Saudi market improved to
Siddiqui believes one of the biggest drivers of this improvement is underwriting discipline. He said that, “the majority of profits are coming from the core insurance operations of these companies rather than gains and losses made from investment activities. As a result, insurance profits have increased to about
Looking forward, Siddiqui sees growth as being a key concern. Although, growth was modest in 2016 (only 1%), he believes there are avenues available for companies to look for growth.
“The Saudi insurance market, as far as motor is concerned, is considered largely uninsured. An estimated 55% of vehicles in the country are uninsured. This represents a large and potentially untapped market for insurance companies.”
To view the Best’s Special Report on Saudi insurers, titled, “Stability Returns to Saudi Insurers but Growth Prospects Remain Cloudy,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=258708.
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