Saudi Arabia Reinsurance Market

Saudi Arabia Reinsurance Market Size and Share:

The Saudi Arabia reinsurance market size was valued at USD 3.11 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 5.17 Billion by 2033, exhibiting a CAGR of 5.40% from 2025-2033.  The market is primarily driven by a heightened focus on environmental sustainability through tailored solutions for climate-related risks, the rapid expansion of regional and global partnerships to diversify risk portfolios and enhance technical expertise, and the rising demand for health and life reinsurance supported by innovative technologies and healthcare advancements under Vision 2030.

The market in Saudi Arabia flourishes due to economic diversification under Vision 2030, emphasizing renewable energy, tourism, and advanced technology. In accordance with this, rise in giga-projects like Qiddiya and Amaala drive demand for specialized reinsurance to manage large-scale risks. Furthermore, the rapid introduction of mandatory health and motor insurance regulations is further fueling the Saudi Arabia reinsurance market growth. For instance, on December 3, 2024, the Healthcare Insurance Compliance Service, launched with key government backing, advanced tools for monitoring healthcare coverage, and promoting inclusivity, aligning with Vision 2030’s goals. This initiative strengthens healthcare systems and expands reinsurance opportunities. Additionally, emerging risks like cybersecurity threats and environmental liabilities prompt insurers to seek innovative solutions, thereby impelling the market expansion. Moreover, the reinsurance sector plays a vital role in managing risks and contributing to Saudi Arabia's economic and social transformation.

Besides this, the stringent regulatory framework of the Saudi Central Bank (SAMA) drives transparency and encourages foreign reinsurer participation, bolstering the Saudi Arabia reinsurance market share. Similarly, rising localization efforts have established regional hubs and enhanced domestic reinsurer capabilities, thereby strengthening market demand. Furthermore, digital technologies, such as big data and artificial intelligence (AI), improve risk modeling and operational efficiency. On January 16, 2024, General Organization for Social Insurance (GOSI) reported that in 2023, 80 million transactions were completed, with 96% conducted electronically, resulting in a 73% reduction in branch visits. Insurance benefits expenses reached SR132 Billion (USD 35.19 Billion), and AI powered over 50% of services, including the virtual assistant Amin, which resolved 98.5% of customer inquiries. Rising demand for takaful (Islamic insurance) products aligns with cultural and economic goals, creating growth opportunities.

Saudi Arabia Reinsurance Market Trends:

Growing Focus on Environmental and Climate Risks

The Saudi reinsurance market is increasingly focused on sustainability, driven by growing awareness of environmental and climate-related risks. With rising occurrences of extreme weather events, insurers and reinsurers are offering specialized coverage for floods, droughts, and heatwaves. Investments in renewable energy projects under Vision 2030, including solar, wind, and hydrogen initiatives, have heightened the demand for tailored reinsurance solutions. Notably, on July 8, 2024, Saudi Re secured a USD 71 Million capital increase through a subscription agreement with the Public Investment Fund (PIF), raising its capital to USD 307 Million. This strategic move enhances Saudi Re’s financial strength and reinsurance capabilities while aligning with Vision 2030’s sustainability objectives. PIF’s investment highlights its commitment to fostering a robust insurance sector and promoting environmentally responsible practices. Increased ESG compliance among reinsurers further strengthens market stability and resilience, addressing global demand for sustainable risk management strategies.

Expansion of Regional and Global Partnerships

To enhance market capacity and diversify risk portfolios, the market is increasingly focusing on forming strategic regional and global partnerships. Local reinsurers are collaborating with international players to access technical expertise and broaden their coverage for complex risks, including those in energy and infrastructure. For instance, on September 6, 2024, OneDegree, a digital asset insurer, partnered with Saudi Arabia's Walaa Cooperative Insurance to strengthen global reinsurance for digital asset products. This partnership, announced at the 24 Fintech conference in Riyadh, supports Vision 2030's Web3 growth initiatives. The Saudi Arabia reinsurance market outlook highlights the role of regional hubs in facilitating cross-border collaborations, addressing regulatory requirements, and attracting foreign capital. These partnerships reinforce the Kingdom’s ambition to emerge as a leader in the global reinsurance landscape.

Growth in Health and Life Reinsurance

The growing demand for health and life reinsurance is among the key Saudi Arabia reinsurance market trends, driven by population growth and increasing awareness of health coverage. Vision 2030’s emphasis on enhancing healthcare infrastructure is expanding private health insurance penetration, creating opportunities for reinsurers to manage complex portfolios. Advancements in medical technologies and telemedicine have introduced new risks, necessitating innovative reinsurance products. For example, on September 15, 2024, the Council of Health Insurance (CHI) launched "Bushra," an AI-powered digital assistant designed to improve healthcare service quality and beneficiary satisfaction. Bushra, available via the CHI website and soon on the Daman app and WhatsApp, offers 24/7 interactive support with swift, accurate responses. This reflects the critical role of reinsurance in sustaining financial stability and addressing the changing needs of the health and life insurance sectors.

Saudi Arabia Reinsurance Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia reinsurance market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, mode, distribution channel, and application.

Analysis by Type:

• Facultative Reinsurance
• Treaty Reinsurance 
  • Proportional Reinsurance
  • Non-Proportional Reinsurance

Facultative reinsurance plays a critical role in the Saudi Arabia reinsurance market by providing flexibility and customization to insurers. As the insurance sector grows, driven by government-backed infrastructure projects and increased awareness of risk management, insurers seek to manage high-value or unique risks effectively. Facultative reinsurance allows ceding companies to transfer individual risks, enabling them to expand their underwriting capacity without exceeding their risk appetite. The ongoing implementation of Vision 2030 is increasing investments in large-scale projects, such as NEOM and The Red Sea Project, creating demand for bespoke reinsurance solutions. Moreover, facultative reinsurance supports local insurers in managing exposure to emerging risks like cybersecurity and environmental liabilities, which require tailored coverage beyond standard treaty arrangements.

Treaty reinsurance is equally significant in supporting the robust growth of the Saudi market. It offers insurers comprehensive and predictable coverage for entire portfolios, facilitating financial stability and enabling long-term planning. With the Kingdom’s insurance penetration still below the global average, treaty reinsurance has proven instrumental in encouraging insurers to expand their offerings. The push for localization under Vision 2030, along with the Saudi Central Bank’s (SAMA) regulatory initiatives, is encouraging the development of regional reinsurance hubs. This is leading to more treaty agreements as insurers align with market demand for streamlined and efficient risk-sharing mechanisms. The diversification of risks through treaties is also attracting global reinsurers, further strengthening the market's resilience.

Analysis by Mode:

• Online
• Offline

The online segment in the market is gaining prominence as digital transformation becomes a central focus under Vision 2030. Insurers and reinsurers are leveraging online platforms for efficient risk assessment, policy issuance, and claims processing. This digital shift has been driven by advancements in artificial intelligence (AI) and big data analytics, which enable more precise risk modeling and faster decision-making. The rise of insurtech companies further accelerates the adoption of online solutions, attracting younger, tech-savvy customers. Regulatory support from the Saudi Central Bank (SAMA) for digital insurance initiatives is also encouraging market players to innovate, reducing operational costs, and improving accessibility to reinsurance products for smaller insurers, thereby broadening market participation.

Offline interactions remain vital in strengthening the Saudi reinsurance market demand, particularly in building trust and negotiating complex agreements. Reinsurance contracts often involve large-scale risks, such as those associated with mega projects like NEOM, which require detailed discussions and personalized solutions. The importance of offline engagement is further emphasized in fostering relationships with international reinsurers and local ceding companies, ensuring alignment with specific market needs. Conferences and in-person meetings provide opportunities for networking, knowledge sharing, and fostering long-term partnerships. While digital tools enhance operational efficiency, the offline approach ensures that the human element remains central to managing intricate risks and maintaining confidence in the rapidly shifting market.

Analysis by Distribution Channel:

• Direct Writing
• Broker

Direct writing plays a significant role in the market by fostering close relationships between reinsurers and ceding companies. This approach allows reinsurers to understand the specific needs of local insurers, tailoring solutions to manage risks associated with large-scale projects and emerging industries. With Vision 2030 driving numerous ambitious developments, direct writing provides a streamlined channel to address the growing demand for specialized reinsurance coverage. Additionally, the push for localization and regulatory support from the Saudi Central Bank (SAMA) encourages direct collaboration between regional reinsurers and insurers, enhancing market efficiency and strengthening the competitive landscape. This direct engagement also promotes quicker decision-making and adaptability in risk-sharing arrangements.

Reinsurance brokers are instrumental in facilitating growth within the Saudi market by connecting insurers with global reinsurers, offering expertise in complex risk structuring and placement. As the market grows, brokers help local insurers access international capacity and specialized coverage, essential for large-scale risks in infrastructure, energy, and technology sectors. Their advisory role supports insurers in navigating regulatory requirements and optimizing reinsurance programs to meet changing market demands. With the increasing complexity of risks associated with climate change and cyber threats, brokers provide valuable insights and innovative solutions. Their presence also enhances transparency and competitiveness, ensuring the Saudi reinsurance market attracts global participants and maintains its growth trend.

Analysis by Application:

• Property and Casualty Reinsurance 
• Life and Health Reinsurance
  • Disease Insurance
  • Medical Insurance

Property and casualty reinsurance is pivotal in the Saudi Arabia reinsurance market, driven by large-scale infrastructure projects and urban development under Vision 2030. The construction of mega-initiatives increased the need for reinsurance to manage risks associated with property damage, liability, and natural disasters. Additionally, the growing industrial and commercial sectors require comprehensive coverage for fire, theft, and operational disruptions. Reinsurers play a crucial role in supporting insurers’ capacity to underwrite these large and complex risks. Regulatory advancements by further bolster the market, ensuring robust risk management practices. As climate-related risks intensify, the demand for innovative property and casualty reinsurance solutions continues to expand.

Life and health reinsurance, particularly in the areas of disease and medical insurance, is gaining importance as Saudi Arabia enhances its healthcare infrastructure and promotes private sector involvement. Vision 2030’s emphasis on improving healthcare accessibility and quality increased growth in the health insurance market, driving demand for reinsurance support. The rise in chronic disorders and lifestyle-related health issues necessitates expanded coverage, placing additional pressure on primary insurers. Reinsurers provide the capacity and expertise needed to manage escalating claims and adopt advanced pricing models. With the adoption of technology like telemedicine and data analytics, life and health reinsurers help insurers offer innovative and cost-effective solutions, fostering market growth and resilience.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The Northern and Central regions play a critical role in the Saudi market due to their concentration of economic activities and infrastructure projects. Riyadh, located in the central region, serves as the Kingdom's financial hub, housing major insurance and reinsurance companies. Vision 2030 has intensified investment in this area, with projects like King Salman Park and the Riyadh Metro driving demand for property and liability reinsurance. Additionally, the Northern region’s industrial development and projects, create significant opportunities for reinsurers to cover large-scale risks. The government’s focus on urban expansion and industrial diversification in these regions ensures consistent growth in reinsurance demand, especially for infrastructure, energy, and industrial coverage.

The Western region holds strategic importance for the reinsurance market due to its religious tourism and coastal developments. The hospitality sector, driven by millions of annual pilgrims, requires robust insurance coverage, including property and liability risks. Mega-projects like the Jeddah Tower further boost demand for specialized reinsurance solutions. Additionally, the region’s vibrant trade and logistics sectors increase the need for marine and cargo reinsurance. As tourism and commercial activities expand under Vision 2030, reinsurers play a vital role in supporting insurers to manage the region’s growing and diverse risk portfolio.

The Eastern region’s prominence in the Saudi Arabia reinsurance market stems from its role as the Kingdom’s energy hub. With major oil and gas operations headquartered in this area, the demand for energy-specific reinsurance is substantial. Companies like Saudi Aramco require sophisticated reinsurance solutions to manage risks related to exploration, production, and transportation. The region also benefits from growing industrial zones and economic cities, which expand the need for property, liability, and business interruption coverage. Vision 2030’s drive for economic diversification, particularly through renewable energy projects and petrochemical expansions, creates further opportunities for reinsurers. The region’s proximity to international trade routes also strengthens demand for marine reinsurance.

The Southern region’s significance lies in its agricultural, mining, and residential developments. As the government invests in enhancing the region’s infrastructure and tourism potential, reinsurance demand for property, casualty, and liability risks continues to grow. Mining operations, driven by Vision 2030’s emphasis on mineral resource exploration, require tailored reinsurance solutions to mitigate operational risks. Additionally, infrastructure development in remote areas increases the need for reinsurance coverage for transportation and construction projects. The region’s unique geographical challenges, including exposure to natural disasters like flooding, further highlight the importance of reinsurance in managing risks and supporting insurers in sustaining long-term growth.

Competitive Landscape:

The Saudi Arabia reinsurance market's competitive landscape is shaped by collaboration between local and international players, escalated by Vision 2030’s focus on diversification and modernization. Domestic reinsurers, supported by government initiatives, are enhancing capabilities through partnerships and advanced technologies, while global firms seize opportunities in energy, infrastructure, and healthcare. Notably, on December 25, 2024, Al-Futtaim's Orient Insurance entered the Saudi market, offering general, life, medical, motor insurance, and reinsurance solutions. Backed by top-tier ratings, Orient aims to leverage the Kingdom’s growing insurance demand driven by economic diversification, rising health coverage, and vehicle sales. Regulatory reforms have bolstered transparency, attracting foreign investment. Rising ESG compliance and specialized coverage needs, such as renewable energy and digital assets, further enhance innovation and competitiveness.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia reinsurance market with detailed profiles of all major companies.

Latest News and Developments:

• January 13, 2025: Aon plc launched Aon Reinsurance Brokers Saudi Arabia LLC, aligning with Vision 2030 to enhance the Kingdom’s insurance sector. Led by Mohammad Al Marhoon, the unit offers reinsurance expertise and innovative solutions, addressing risks like climate change and data security while training Saudi talent and supporting market resilience and growth.
• October 6, 2024: Saudi Reinsurance Co. (Saudi Re) signed a SAR 208.7 Million reinsurance contract with Al-Etihad Cooperative Insurance. The agreement provides coverage for non-Saudi workers' financial dues in cases of private sector entity delinquency. The 12-month deal is expected to impact Saudi Re's financial results starting Q4 2024.
• July 28, 2024: Buruj Cooperative Insurance and MedGulf signed a non-binding MoU to explore a merger, strengthening Saudi Arabia’s insurance and reinsurance capabilities. The deal, involving a share exchange and increased capital for MedGulf, supports Vision 2030 goals and positions the sector, for enhanced stability and expanded reinsurance solutions.
• October 2023: The Saudi Central Bank (SAMA) granted a license to “ReTech Reinsurance Brokers Co” for a soft launch of online reinsurance brokerage services. This initiative aims to bolster the insurance and fintech sectors while promoting innovative financial solutions for greater financial inclusion in Saudi Arabia. 

Saudi Arabia Reinsurance Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia reinsurance market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia reinsurance market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia reinsurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.