Saudi Arabia Property & Casualty Insurance Market: Risk Coverage Expansion, Regulatory Reforms & Growth Outlook

According to IMARC Group’s latest research publication, Saudi Arabia property casualty insurance market size reached USD 47.6 Million in 2025. The market is projected to reach USD 81.2 Million by 2034, exhibiting a growth rate (CAGR) of 6.13% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Property Casualty Insurance Market

● Predictive Analytics for Risk Assessment: AI algorithms analyze vast datasets from motor accidents, property claims, and weather patterns to predict risk profiles with remarkable accuracy. Saudi insurers are deploying machine learning models that reduce underwriting time by up to 40%, enabling faster policy issuance while maintaining precise risk pricing for both individual and commercial clients.

● Automated Claims Processing: Artificial intelligence streamlines claims management through image recognition and natural language processing. When a policyholder submits a motor or property damage claim, AI systems can instantly assess damage severity, detect fraud patterns, and approve straightforward cases within hours instead of days, significantly improving customer satisfaction across the Kingdom.

● Personalized Product Development: Machine learning enables insurers to create tailored coverage options based on individual behavior patterns. For motor insurance, telematics combined with AI can offer usage-based pricing, while property insurance products adapt to specific building characteristics and location risks, giving Saudi consumers more relevant and cost-effective protection.

● Enhanced Fraud Detection: AI-powered systems identify suspicious claim patterns and anomalies that human reviewers might miss. By analyzing historical data, behavioral indicators, and cross-referencing multiple sources, these tools help Saudi insurers reduce fraudulent claims, protecting both company margins and honest policyholders from inflated premiums.

● Customer Service Optimization: Chatbots and virtual assistants powered by natural language AI provide instant responses to policy queries, renewal reminders, and basic claims guidance. This 24/7 availability improves accessibility for Saudi customers while freeing human agents to handle complex cases, creating a more efficient service ecosystem throughout the insurance journey.

How Vision 2030 is Revolutionizing Saudi Arabia Property Casualty Insurance Industry

Saudi Arabia’s Vision 2030 is fundamentally reshaping the property casualty insurance landscape through massive infrastructure investments and economic diversification. The government has committed over SAR 1.6 trillion to mega-projects including NEOM, Qiddiya, The Red Sea Project, and the Diriyah development, creating unprecedented demand for construction, engineering, and property insurance coverage. These giga-projects alone represent potential insurance premiums worth billions of riyals, as contractors and developers require comprehensive protection against project delays, property damage, and liability risks during construction phases that will stretch across the next decade. The establishment of the independent Insurance Authority in November 2023 marks a critical regulatory milestone, unifying oversight previously split between SAMA and the Council of Health Insurance. This consolidation brings greater transparency, streamlined compliance, and clearer pathways for innovation in the sector. The Authority’s mandatory 30% local reinsurance cession rule, which took full effect in January 2025, redirects substantial premium flows to domestic reinsurers, strengthening local capacity and reducing reliance on international markets. This policy is expected to boost domestic reinsurer earnings by 25% while creating more competitive pricing for Saudi businesses seeking property and casualty coverage. Vision 2030’s goal to increase insurance penetration from current levels of 1.5% to 4.3% of non-oil GDP by 2030 drives aggressive market expansion initiatives. Government-backed programs encourage SMEs — targeted to reach 1 million active businesses by 2027 — to adopt comprehensive insurance coverage, while mandatory motor insurance enforcement tightens compliance and expands the insured vehicle base. The diversification of the economy into tourism, entertainment, logistics, and renewable energy sectors creates entirely new insurance categories, from event cancellation coverage for major sporting and cultural events to specialized policies for solar and wind energy installations across the Kingdom’s vast renewable energy projects.

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Saudi Arabia Property Casualty Insurance Market Trends & Drivers:

The Saudi property casualty insurance market is experiencing robust expansion driven by Vision 2030’s infrastructure boom, regulatory reforms, and rising risk awareness. Giga-projects worth over SAR 1.6 trillion generate substantial demand for engineering, construction, and liability coverage, while Riyadh alone accounts for SAR 320 billion in government-backed infrastructure requiring comprehensive insurance protection. The Insurance Authority’s unified regulatory framework and the 30% local reinsurance mandate strengthen domestic capacity, while stricter motor insurance enforcement closes the uninsured gap and drives premium growth despite competitive online pricing portals. Digital transformation accelerates across the sector, with insurers investing heavily in AI-driven underwriting, telematics-based motor policies, and mobile-first customer platforms. Najm now delivers 95% of services digitally, demonstrating how streamlined claims workflows enhance retention and operational efficiency. The government’s push toward 1 million active SMEs by 2027 fuels demand for flexible, affordable commercial insurance products, while urbanization and real estate development in major cities like Riyadh and Jeddah drive property insurance uptake. InsurTech innovation thrives under SAMA’s regulatory sandbox, with 226 FinTech firms developing usage-based products, blockchain claims protocols, and predictive analytics tools that modernize risk assessment and customer engagement throughout the Kingdom’s evolving insurance ecosystem.

Saudi Arabia Property Casualty Insurance Market Industry Segmentation:

The report has segmented the market into the following categories:

Insurance Type Insights:

• Motor
• Property / Fire
• Marine
• Aviation
• Energy
• Engineering
• Accident and Liability and Others

Distribution Channel Insights:

• Bancassurance
• Brokers
• Direct Sales
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Property Casualty Insurance Market

• January 2025: Public Investment Fund completed a strategic investment in Saudi Reinsurance Company, bolstering domestic reinsurance capacity and enabling the Kingdom to retain more premium value locally while reducing dependence on international reinsurance markets.
• March 2025: Tawuniya secured a major health insurance contract with Saudi Arabian Airlines valued at over 5% of its total premium income, demonstrating the growing corporate demand for comprehensive employee insurance coverage across the Kingdom.
• March 2025: Bupa Arabia launched Saudi Arabia’s first “No Pre-Approvals” health insurance program, allowing members to access treatment without prior authorization, significantly streamlining healthcare access and reducing administrative delays for policyholders.
• November 2024: The Saudi Insurance Authority activated the 30% local reinsurance cession rule, marking a major shift in market dynamics. This regulation is projected to increase domestic reinsurer earnings by approximately 25% while strengthening the Kingdom’s insurance infrastructure.
• July 2024: The Insurance Authority and Council of Health Insurance implemented mandatory health insurance for domestic workers employed by households with more than four staff, potentially covering over 3.8 million workers and expanding market coverage significantly.

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