IslamicFinance.de

Saudi Arabia's crowded insurance sector is set for consolidation amid low penetration rates and rising costs, highlighting the difficulties for smaller firms in the industry to maintain market share or grow their business. The Saudi market remains dominated by compulsory products, with medical and automotive insurance accounting for well over 75 percent of all gross written premiums. Other products such as personal health or life coverage make up only a fraction of total policies issued and premiums written. However, penetration rates across GCC member states could double by 2017 thanks to longer life expectancies and compulsory health insurance programmes.