Gross written insurance premiums in Saudi Arabia increased by 10.7% in 2025 to reach SAR84.3 billion ($22.59 billion), compared with 2024, a report said.

The Saudi Insurance Market Report 2025, issued by the Insurance Authority as part of its commitment to transparency, market development, and the effectiveness of supervisory and regulatory operations, highlighted developments and the sector's performance during 2025, said a Saudi Press Agency report.

Insurance Authority Chief Executive Officer Naji Al-Tamimi said: "The Saudi insurance market's performance indicators during 2025 reflect the sector's growing role in protecting individuals, businesses, and the Kingdom of Saudi Arabia's economic activities."

He noted that the next phase requires a more precise assessment of performance, explaining that as the market matures, growth should be evaluated not only by the volume of premiums but also by the quality and sustainability of that growth. He added that a strong insurance sector is characterized by sustainable growth supported by adequate capital that serves the interests of policyholders and remains resilient under pressure.

Al-Tamimi expressed optimism about the future of the Saudi insurance market, led by the National Insurance Sector Strategy, which will serve as a roadmap for building a robust insurance market that supports the Kingdom's economic diversification while providing protection for individuals and businesses.

According to the report, health insurance and motor insurance together accounted for nearly 89% of total growth in gross written premiums during the year, with health insurance alone contributing approximately 68% of that growth. The number of health insurance beneficiaries rose to more than 14 million, while the number of insured vehicles increased to 11 million.

The report also indicated that the sector maintained profitability in 2025, recording net income of SAR1.9 billion, although profitability declined noticeably compared with 2024.

It further noted that the sector continued to maintain adequate capital overall, with the average solvency margin reaching 156.7% in 2025, compared with 165.7% the previous year. The report highlighted variations in capital resilience across different categories of insurance companies, underscoring the importance of implementing the risk-based capital framework scheduled to take effect on January 1, 2027. The framework will provide a clearer assessment of insurers' capital quality and earnings.

As part of its commitment to ensuring market discipline and protecting the rights of policyholders and beneficiaries, the report stated that the Insurance Authority handled more than 440,000 complaints across various insurance lines during 2025.

 As part of its supervisory efforts, the Insurance Authority issued more than 180 enforcement decisions during the year, imposing fines totaling approximately SAR25 million. Total claims paid reached SAR53 billion, representing a 10% increase over the previous year.

The report concluded that 2026 will be a test of the quality and resilience of growth, identifying four key themes that will shape the sector during the year: investment performance, inflation in health insurance claims costs, pricing cycles in motor insurance, and capital strength.