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Saudi insurance market growing, has untapped potential – Moody's

Saudi insurance market growing, has untapped potential – Moody's
Moody's

Riyadh-Mubasher: Saudi Arabia's insurance market is the second-fastest growing in the GCC region and has good potential for further gains, because of its low insurance penetration levels, Moody's said.

The global rating agency added that the kingdom’s insurance market had premiums worth $8.1 billion in 2014, the second biggest in the GCC.

Saudi Arabia has an eight-year compound annual growth rate (CAGR) of 20.3%, the second-fastest in the GCC, Moody's said.

The rating agency noted that insurance premiums rose by more than 20% in 2014, boosted by premium rate increases in the medical and motor sectors. However, Saudi’s insurance penetration levels of 1.1% are still significantly below those of most advanced economies.

"Despite this robust growth, the kingdom has the lowest insurance density in the GCC and one of the region's lowest penetration levels," said Mohammed Londe, Moody's analyst. "This suggests that there is a high degree of untapped potential in the market."