Saudi Arabia Property Casualty Insurance Market Trends & Forecast Research 2025-2033

Posted by Dheeraj on October 31, 2025 - 5:47am Edited 10/31 at 6:01am

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Saudi Arabia Property and Casualty Insurance Market Overview

Market Size in 2024: USD 44.8 Million

Market Size in 2033: USD 80.3 Million

Market Growth Rate 2025-2033: 6.20%

According to IMARC Group's latest research publication, "Saudi Arabia Property and Casualty Insurance Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia property and casualty insurance market size reached USD 44.8 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 80.3 Million by 2033, exhibiting a growth rate (CAGR) of 6.20% during 2025-2033.

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

Transforming Claims Processing and Settlement: AI-powered automation systems are revolutionizing insurance claims management through intelligent document processing, fraud detection algorithms, and automated damage assessment, reducing claims processing time by 40-50% while improving accuracy by 95% and enhancing customer satisfaction across motor, property, and liability insurance segments in alignment with Vision 2030's digital transformation objectives.
Enhancing Risk Assessment and Underwriting: Advanced machine learning models are transforming underwriting processes through predictive analytics, real-time risk scoring, and IoT-integrated data collection from telematics devices and smart home systems, enabling insurers to offer personalized premiums and more accurate risk pricing while reducing underwriting costs by 30-35% across the Saudi insurance sector.
Optimizing Fraud Detection and Prevention: AI-driven fraud detection systems utilizing pattern recognition, behavioral analysis, and deep learning algorithms are identifying suspicious claims with 85-90% accuracy, saving insurers millions in fraudulent payouts while protecting legitimate policyholders and supporting the Insurance Authority's mandate to strengthen sector integrity and financial stability.
Revolutionizing Customer Experience and Engagement: Natural language processing and AI chatbots are transforming customer interactions through 24/7 multilingual support in Arabic and English, instant policy quotes, automated renewals, and personalized product recommendations, improving customer retention by 25-30% and supporting the broader Saudi digital transformation market projected to reach USD 82 billion by 2033.
Facilitating Predictive Analytics for Risk Management: AI-powered predictive models are enabling insurers to forecast emerging risks, assess catastrophe exposure, and optimize reinsurance strategies through big data analytics and climate modeling, supporting Saudi Re's strategic capital enhancements and enabling more effective management of complex risks associated with Vision 2030 mega-projects worth over USD 1.25 trillion.

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Saudi Arabia Property and Casualty Insurance Market Trends & Drivers:

Saudi Arabia's property and casualty insurance market is experiencing robust growth driven by comprehensive regulatory reforms led by the Insurance Authority (IA), established in November 2023 as a unified independent regulator consolidating powers previously held by SAMA and the Council of Health Insurance. The IA reported 14.6% sector growth in Q3 2023, with the broader insurance market expanding 26.9% according to SAMA's 2022 Insurance Market Report, as the Financial Sector Development Programme targets increasing Gross Written Premium as a percentage of non-oil GDP to 2.4% by 2025 and 4.3% by 2030.

The massive infrastructure development under Vision 2030 is creating unprecedented demand for property and casualty insurance, with rapid urban expansion in Riyadh and Jeddah driving comprehensive coverage requirements for large-scale infrastructure projects and high-value properties. NEOM's groundbreaking developments, the Red Sea Project, and Qiddiya entertainment city are generating substantial requirements for engineering insurance, property coverage, and liability protection, while strategic capital enhancements by companies like Saudi Re, which recorded 351% net profit increase through strategic capital hikes, are enabling underwriters to manage increasingly complex risks.

Technological transformation is reshaping the market landscape, with the Saudi AI-Powered Insurance Claims Automation Market valued at USD 1.2 billion and growing 40% as insurers adopt cloud-based solutions, while smartphone penetration reaching 90% facilitates widespread adoption of digital claims platforms and telematics-based motor insurance products. The mandatory health insurance for domestic workers and enhanced automobile insurance regulations by SAMA are expanding market penetration, while 70% of Saudi consumers prioritize seamless digital experiences, compelling insurers to implement AI-powered solutions that provide real-time updates and personalized services. The implementation of gradual reinsurance cession requirements—20% in 2023, 25% in 2024, and 30% in 2025—to the local reinsurance market is strengthening domestic capacity, while the licensing of foreign insurance branches, including Cigna Worldwide Insurance Company as the first foreign-owned health insurance branch, and digital aggregators like Al-tizam and Altheqa, is intensifying competition and driving innovation across property, motor, marine, aviation, energy, engineering, and accident and liability insurance segments.

The Saudi Arabia property and casualty insurance market report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the biochar market and capitalize on emerging opportunities.

Saudi Arabia Property and Casualty Insurance 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:

Insurance Agency
Bancassurance
Brokers
Direct Sales
Others

Breakup by Region:

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 and Casualty Insurance Market

May 2025: S&P Global confirmed Saudi Arabia's insurance sector outlook as stable for 2025, projecting top-line revenue growth between 10% and 15%, with net profits of insurance companies growing 17% in Q3 2024 compared to Q3 2023, supported by increased construction activity and infrastructure development under Vision 2030.
April 2025: Howden expanded into Saudi Arabia by launching a new reinsurance brokerage, marking a significant step in broadening the Kingdom's insurance landscape and offering enhanced risk management solutions for local insurers and businesses managing complex risks in property and casualty segments.
January 2025: Saudi Arabia's property and casualty insurance market recorded 16.9% year-over-year revenue growth in Q3 2024, with motor insurance revenues growing 22.7% driven by new vehicle registrations, while property insurance recorded a 20.4% increase reflecting the vibrant industrial and construction sectors.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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