Insurance industry market size forecast in GCC 2023-2028 by segment
The market size of non-life insurance in the Gulf Cooperation Council countries was expected to increase from 30.4 billion U.S. dollars in 2021 to 39.6 billion U.S. dollars in 2028. While the market size of life insurance in the GCC was expected to increase from 3.9 billion U.S. dollars in 2023 to 4.8 billion U.S. dollars in 2028.
Current GCC insurance industry
The insurance industry has experienced positive growth over the years. The market value of both life and non-life insurance almost doubled in the GCC region from 2011 to 2020. Among the Gulf Cooperation Council countries, the Saudi Arabia had the largest market share of the insurance industry in 2020, followed by United Arab Emirates. Although the economic conditions during 2016 and 2018 hindered its growth, it is expected to improve during the coming years.
GCC insurance industry projections
There are optimistic projections for the industry that can be explained by the population growth and stable economic development. The governments have been implementing crucial steps that support the growth of the sector such as the continued application of mandatory insurance coverage, the reinforcement of the regulatory reforms, and economic diversification. The insurance penetration rate in the Gulf Cooperation Council region is expected to remain far below the global average of 7.4 percent until 2026. The insurance penetration rate is the gross written premium measured as a percentage of the gross domestic product. The market size of the insurance industry in the Gulf Cooperation Council was expected to increase from 26.5 billion U.S. dollars in 2021, to 31.1 U.S. billion dollars in 2026. The compound annual growth rate (CAGR) among the GCC countries between 2021 and 2026 was expected to be the highest for Kuwait at 5.3 percent, and the lowest for Saudi Arabia at 1.6 percent.
Current GCC insurance industry
The insurance industry has experienced positive growth over the years. The market value of both life and non-life insurance almost doubled in the GCC region from 2011 to 2020. Among the Gulf Cooperation Council countries, the Saudi Arabia had the largest market share of the insurance industry in 2020, followed by United Arab Emirates. Although the economic conditions during 2016 and 2018 hindered its growth, it is expected to improve during the coming years.
GCC insurance industry projections
There are optimistic projections for the industry that can be explained by the population growth and stable economic development. The governments have been implementing crucial steps that support the growth of the sector such as the continued application of mandatory insurance coverage, the reinforcement of the regulatory reforms, and economic diversification. The insurance penetration rate in the Gulf Cooperation Council region is expected to remain far below the global average of 7.4 percent until 2026. The insurance penetration rate is the gross written premium measured as a percentage of the gross domestic product. The market size of the insurance industry in the Gulf Cooperation Council was expected to increase from 26.5 billion U.S. dollars in 2021, to 31.1 U.S. billion dollars in 2026. The compound annual growth rate (CAGR) among the GCC countries between 2021 and 2026 was expected to be the highest for Kuwait at 5.3 percent, and the lowest for Saudi Arabia at 1.6 percent.
