Riyadh, May 15 (BNA) The Saudi Central Bank (SAMA) issued the fifteenth annual report of the insurance market in the Kingdom of Saudi Arabia. The report highlights the performance of the insurance sector, financial results and its contribution to the Kingdom’s GDP for the year 2021.
According to the report, the insurance sector grew by 8.4% in 2021, with the total written premiums amounting to 42 billion riyals, while the categories of protection, savings and property insurance achieved a noticeable increase in written premiums, according to the Saudi Press Agency (SPA).
The report also indicated that the insurance sector’s contribution to non-oil GDP declined slightly by -0.01% to 1.91%, and the total loss rate increased to 83.4% in 2021 compared to 76.7% in 2020.
The net loss (after zakat and taxes) for the insurance sector amounted to 47 million riyals in 2021, compared to a net profit of 1.38 billion riyals in the previous year. The increase in investment income helped offset the impact of operating losses.
In addition, the report discussed regulatory developments in the insurance sector, including amendments to some articles of the Cooperative Insurance Companies Control Law, the issuance of a number of regulations, and the development of several insurance products. The report indicated that Saudization will increase by 2% in 2021 to reach 77%.