Kathmandu. In 2026, Saudi Arabia’s insurance sector is growing rapidly and will play a major role in the country’s economy.
The economy used to rely heavily on oil. But with the Vision 2030 plan, new areas are now gaining importance. According to international agencies, the Saudi economy is now estimated to be worth about $1.2 to $1.4 trillion.
The population of Saudi Arabia is currently around 36 million to 37 million. Most of them are young and active. As the population grows, the demand for health, life and motor insurance is growing rapidly.
Saudi Arabia’s economy is heavily dependent on oil and gas. However, the finance, insurance, tourism, and technology sectors are also growing rapidly. According to the Saudi central bank, the insurance sector is gradually making a significant contribution to the country’s non-oil economy.
Saudi Arabia’s insurance sector is expected to generate around 76 to 80 billion Saudi Riyals in total premiums in 2026. This represents between about 2 percent and 2.5 percent of the country’s total economy. This rate is still low compared to developed countries but is increasing rapidly.
Currently, there are around 30 to 35 insurance companies operating in Saudi Arabia. At the top of these are Tawaniya, Bupa Arabia and Al Rajhi Takaful. These large companies control a significant portion of the market.
One of the major challenges in the insurance sector is the high cost of claims. In many cases, 70 percent to 85 percent of the fund has to be paid as claims. This reduces the profits of the companies.
However, the positive news is that public interest in insurance has increased. About 70 percent to 80 percent of Saudi Arabia’s population is covered by some form of insurance. This number has grown exponentially. Because health insurance is necessary in many cases.
Saudi Arabia’s insurance sector is also strong internationally. Major international companies, such as Bupa Allianz and Munich Reserve, are working closely in this area. They provide support with technology, financing, and risk management.
According to experts, this sector will be even bigger in the future. If insurance companies can use new technology, improve service and control costs, they will thrive.
Overall, the Saudi insurance sector is projected to be the fastest growing and promising sector by 2026. It will play a major role in the economic development of Saudi Arabia. –Agency
