Saudi Arabia Motor Insurance Market
Saudi Arabia Motor Insurance Market Size Set to Grow at Significant CAGR of 4% to Reach USD 10.45 Billion by 2029
Published | 24 April 2023
Saudi Arabia motor insurance market is flourishing due to growing automobile sales driven by an increasing need for personal mobility solutions and motor insurance companies’ rapid adoption of insurtech and innovative tracking & digital technologies.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia motor insurance market size at USD 7.95 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Saudi Arabia motor insurance market size to grow at a significant CAGR of 4.07% reaching a value of USD 10.45 billion by 2029. The number of crashes, traffic mishaps, and accidents is increasing. These factors contribute to the determination of automobile insurance premiums. People in large urban areas, for example, are willing to pay a high premium due to their substantial discretionary income. Texting, talking, or doing other activities while driving is a problem in every city and can be a major cause of accidents. Auto insurance pays for an injured person's medical treatment, lost wages, vehicle repair, and any property damage caused by an accident. Therefore, customers are purchasing auto insurance to mitigate financial losses, which is driving up demand during the forecast period.
Saudi Arabia Motor Insurance Market – Overview
Motor insurance covers cars, trucks, automobiles, motorcycles, and other vehicles. Motor insurance is popular among consumers since it protects them financially in the event of vehicle damage as well as injury to other drivers, passengers, or pedestrians (i.e., third-party cover). Therefore, adequate auto insurance is both a legal need and a necessity.
Impact of COVID-19 on Saudi Arabia Motor Insurance Market
Due to the nationwide lockdown that forced businesses to close, the COVID-19 pandemic severely impacted the Saudi Arabia motor insurance market. Because a significant amount of premiums is used to buy new cars, the closure and subsequent near-halt in activity might make the problem worse. The absence of new car purchases is one of the biggest problems the industry is facing. Since the vast majority of existing vehicles lose their insurance by the third and fourth years, the coverage net for them is often increased to make up for this.
Saudi Arabia Motor Insurance Market - By Distribution Channel
On basis of distribution channel, Saudi Arabia motor insurance market is divided into Agents, Brokers, Banks, and Online segments. During the forecast period, the agent segment is expected to experience the fastest growth in the Saudi Arabia motor insurance market. This is due to the ease of purchasing insurance policies, insurance agents guide discounts, offers, and plans, bolstering consumer confidence in purchasing motor insurance.
Saudi Arabia motor insurance market is fiercely competitive. Major companies in the market include Bupa Arabia for Cooperative Insurance, Tawuniya Insurance, Allianz Saudi Fransi Cooperative Insurance Co., Malath Cooperative Insurance & Reinsurance Co., MetLife AIG ANB Cooperative Insurance Company, Gulf General Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company (SAICO), Aljazira Takaful Taawuni Company, Wataniya Insurance Company, MedGulf Allianz Takaful, Al Rajhi Takaful, AXA Cooperative Insurance Company, Arabian Shield Cooperative Insurance Company, Chubb Arabia Cooperative Insurance Company, and Arabian Gulf Cooperative Insurance Company. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the Saudi Arabia motor insurance market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Saudi Arabia Motor Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Motor Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Saudi Arabia Motor Insurance Market - By Type (Liability Coverage, Comprehensive); By Distribution Channel (Agents, Brokers, Banks, Online, Others), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: April 2023
An increasing focus on insuring against the loss during the untoward incidents, motor insurance companies’ rapid adoption of insurtech and innovative tracking & digital technologies, and growing automobile sales driven by an increasing need for personal mobility solutions across the kingdom could boost the growth of Saudi Arabia motor insurance market during the forecast period between 2023 and 2029.
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