27% increase in insurance policies in Saudi Arabia during the year … amounted to 7.64 million

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Insurance companies in Saudi Arabia issued about 7.64 million insurance policies last year, compared to 6.01 million policies in 2018, registering a growth of 27 percent, the highest growth in four years, specifically since 2015.
According to the analysis of the reports unit in the “Al-Iqtisadiah” newspaper, based on the financial statements of insurance companies listed in the Saudi stock market and SAMA data, the number of documents issued in 2019 is the second highest recorded since 2009, while 2015 issued by 8.12 million Insurance policy.
The average cost of the “vehicle” insurance policy decreased for the third year in a row, as it decreased in 2019, 21.5%, in 2018, 22.1%, and in 2017, 9.6%.
The average cost of the vehicle insurance policy in 2019 was about 1722 riyals, which is the lowest level since 2013, which averaged around 1702 riyals at the time.
The decrease in the average cost of the vehicle insurance policy is due to the decrease in the total written premiums (spending on vehicle insurance) for the third year in a row, compared to the increase in the number of policies for the third year in a row.
The total premiums written in vehicle insurance during 2019 decreased 8.7 percent, compared to a 16.3 percent increase in the number of documents.
In 2018, the total written premiums decreased by 15.4% against the increase in the number of documents, 8.7%, while the total written premiums decreased in 2017, 8.4%, compared to the increase in the number of documents 1.3%.
As for the second type of insurance with high demand in the Saudi market, health insurance has an average cost of the insurance policy of about 9981 riyals in 2019, a decline of 31.1 percent compared to its levels in 2018 of about 14.49 thousand riyals.
The average cost of the health insurance policy decreased by 2.4 percent in 2018, registering a decline for the second year in a row in 2018 and 2019, after a two-year growth in 2017, 132.4 percent and in 2016, 14.9 percent.
Motor and “health” insurance accounted for 94.9 percent of the number of insurance policies issued by insurance companies in 2019, 65.4 percent for vehicle insurance and 29.5 percent for health insurance.
As for the other eight types of insurance, the remaining 5.1% was acquired by about 390.64 thousand insurance policies.
Economic Reports Unit

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