National Insurance Sector Strategy Approved In Saudi Arabia To Expand Market And Protect Citizens

The Cabinet’s approval of the National Insurance Sector Strategy marks a key step for the Saudi insurance market, setting a clear framework to expand protection, support economic stability, and align sector growth with the objectives of Saudi Vision 2030 and the Financial Sector Development Program over the coming years.

Insurance Authority Board Chairman Abdulaziz bin Hassan Al‑Boug and CEO Eng. Naji Al‑Faisal Al‑Tamimi expressed gratitude to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs, for the approval of the strategy.

Al‑Boug stated that the decision reflects the Kingdom’s continued support for the insurance sector from its leadership and pointed to the establishment of the Insurance Authority as an essential turning point, through which the National Insurance Sector Strategy has been prepared to realise the sector’s full capabilities and raise the Saudi insurance market to advanced international levels.

Explaining the strategic framework, Al‑Boug said the National Insurance Sector Strategy is based on three central goals that match the leadership’s vision and Saudi Vision 2030, namely strengthening insurance protection for individuals and companies, building a sustainable and efficient insurance market, and ensuring that insurance coverage supports the handling of national-level risks across the Kingdom.

Among the most notable commitments set by the National Insurance Sector Strategy are expanding the overall size of the Saudi insurance market and raising insurance penetration in non-oil GDP to 3.6% by 2030, while also doubling risk-based capital levels and improving retention rates in property and casualty insurance lines.

The strategy also includes specific objectives to broaden health and vehicle coverage, including plans to extend health insurance to 23 million beneficiaries, increase the number of insured vehicles to 16 million, and create further employment opportunities for national talent within the insurance sector, supporting wider economic participation and skills development.

Al‑Tamimi described the approved National Insurance Sector Strategy as a main reference that will guide the Saudi insurance sector in the coming period, noting that it will strengthen protection frameworks, support sustainable development efforts, and reinforce economic stability in accordance with the Kingdom’s position in the global economy and the Financial Sector Development Program.

Detailing how the strategy will be implemented, Al‑Tamimi said the Insurance Authority will cooperate with partners and stakeholders through a structured framework that includes 11 strategic and enabling programs and 72 initiatives, designed to deliver nine strategic promises that reflect the insurance sector’s role in supporting the Kingdom’s broader development journey under Saudi Vision 2030.

Al‑Boug underlined the importance of the insurance sector as a key supporter of comprehensive development in the Kingdom, noting its role in encouraging economic growth, strengthening protection mechanisms for people and businesses, and helping maintain national economic stability, while the development of the National Insurance Sector Strategy forms one of the main responsibilities assigned to the Insurance Authority under Cabinet Resolution No. 85, with backing from the Financial Sector Development Program.

With inputs from SPA