RIYADH: The Kingdom’s insurance sector recorded a 26.8 percent decline in gross written premiums in the second quarter of 2021, according to official data.
The Saudi Central Bank’s monthly report showed that the total written premiums dropped to SR9.37 billion ($2.49 billion) from SR12.8 billion in the previous quarter.
Energy insurance class showed a notable increase in written premiums while the sharpest fall in gross and net written premiums was recorded in aviation, engineering, property, and motor policies. However, overall net claims remained steady in both quarters at around SR6.46 billion.
While the total number of insurance policies decreased by 13.45 percent to stand at SR2.08 million in Q2 2021 compared with SR2.4 million in Q1 of 2021.
Meanwhile, SAMA continued to encourage mergers and acquisitions in the Saudi insurance sector to ensure that they are able to achieve the Vision 2030 goals.
Mohamed Ramday, an independent London-based economist, told Arab News that such mergers and acquisitions “will enable the Saudi insurance sector to better compete with offshore rivals in underwriting and insuring some of the ongoing and planned megaprojects under the Vision 2030 plan.”
Saudi insurance sector net income plummets, as premiums go up