Saudi Arabia Accident Insurance Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Saudi Arabia Accident Insurance Market Overview

• The Saudi Arabia Accident Insurance Market is valued at USD 2.2 billion, based on a five-year historical analysis. This growth is primarily driven by increasing awareness of personal safety, government regulations mandating insurance coverage, and a rise in the number of vehicles on the road, leading to higher demand for motor accident insurance and personal accident policies. The expansion of digital platforms and personalized insurance solutions is further accelerating market growth by improving accessibility and customer satisfaction .
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations, economic activities, and infrastructure development. These urban centers are hubs for business and commerce, resulting in a higher demand for various types of accident insurance, including corporate and travel accident insurance. The concentration of expatriate workers and business travelers in these cities also contributes to the robust demand for accident coverage .
• In 2023, the Saudi Arabian government implemented the Motor Vehicle Insurance Regulation, issued by the Saudi Central Bank (SAMA), requiring all vehicle owners to have mandatory motor accident insurance. This regulation aims to enhance road safety and ensure that victims of accidents receive timely compensation, thereby increasing the overall penetration of accident insurance in the market. The regulation also sets minimum coverage standards and compliance requirements for insurers .

Saudi Arabia Accident Insurance Market Segmentation

By Insurance Type:The major segments in this category include Motor Accident Insurance, Personal Accident Insurance, Group Accident Insurance, Travel Accident Insurance, Property/Fire Accident Insurance, Marine/Aviation Accident Insurance, Liability Accident Insurance, and Others. Among these, Motor Accident Insurance is the leading sub-segment due to the high number of vehicles and the mandatory nature of this insurance in the country. The increasing number of road accidents and the growing awareness of personal safety further drive the demand for this type of insurance. Personal Accident Insurance is also gaining traction due to rising demand for comprehensive coverage among individuals and families .

By End-User:This segmentation includes Individuals (Retail), Small and Medium Enterprises (SMEs), Corporates (Commercial), Government Entities, and Others. The Individuals (Retail) segment is the most significant due to the increasing number of personal insurance policies being purchased by the general public. The rise in disposable income and awareness of personal safety has led to a surge in demand for personal accident insurance among individuals. Corporates and SMEs are also showing increased interest in group accident insurance, driven by regulatory compliance and employee welfare initiatives .

Saudi Arabia Accident Insurance Market Competitive Landscape

The Saudi Arabia Accident Insurance Market is characterized by a dynamic mix of regional and international players. Leading participants such as Tawuniya (The Company for Cooperative Insurance), Bupa Arabia for Cooperative Insurance, Al Rajhi Takaful, Gulf Insurance Group (GIG Saudi), Allianz Saudi Fransi Cooperative Insurance Company, Medgulf (The Mediterranean & Gulf Cooperative Insurance & Reinsurance Company), Alinma Tokio Marine, United Cooperative Assurance Company (UCA), Malath Cooperative Insurance Co., Al-Etihad Cooperative Insurance Co., Saudi Arabian Cooperative Insurance Company (SAICO), Aljazira Takaful Taawuni Company, Walaa Cooperative Insurance Company, Al-Sagr Cooperative Insurance Co., Arabian Shield Cooperative Insurance Company contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Accident Insurance Market Industry Analysis

Growth Drivers

• Increasing Road Traffic Incidents:In Saudi Arabia, road traffic incidents have surged, with over500,000 accidents reported in future, according to the Saudi Ministry of Interior. This alarming statistic has heightened the demand for accident insurance, as individuals seek financial protection against potential liabilities. The government’s focus on improving road safety through initiatives like the National Traffic Safety Strategy aims to reduce these incidents, further driving the need for comprehensive insurance coverage in the market.
• Rising Awareness of Personal Safety:The growing awareness of personal safety among Saudi citizens has led to an increased interest in accident insurance. In future, surveys indicated that68%of respondents recognized the importance of having insurance coverage for personal safety. This shift in mindset is supported by educational campaigns from the government and insurance companies, which emphasize the financial security that accident insurance provides, thus contributing to market growth.
• Government Initiatives for Insurance Coverage:The Saudi government has implemented several initiatives to promote insurance coverage, including mandatory insurance for vehicle owners. As of in future, approximately80%of vehicle owners are compliant with this requirement, according to the Saudi Central Bank (SAMA). These initiatives not only enhance the insurance penetration rate but also encourage consumers to consider additional accident insurance products, thereby expanding the market significantly.

Market Challenges

• Lack of Consumer Awareness:Despite the growth in the accident insurance market, a significant challenge remains the lack of consumer awareness regarding available products. Reports indicate that nearly45%of the population is unaware of the specific benefits and coverage options of accident insurance. This gap in knowledge hinders market expansion, as potential customers may not see the value in investing in insurance, limiting overall market growth.
• Regulatory Compliance Issues:The accident insurance market in Saudi Arabia faces challenges related to regulatory compliance. Insurers must navigate complex regulations set by the Saudi Central Bank (SAMA), which can lead to increased operational costs. In future, compliance-related expenses accounted for approximately15%of total operational costs for insurers, impacting their ability to offer competitive pricing and innovative products in the market.

Saudi Arabia Accident Insurance Market Future Outlook

The future of the Saudi Arabia accident insurance market appears promising, driven by technological advancements and evolving consumer preferences. As digital platforms gain traction, insurers are expected to enhance their service delivery through streamlined claims processing and personalized offerings. Additionally, the increasing demand for comprehensive coverage plans reflects a shift in consumer behavior, indicating a potential for growth in tailored insurance products that meet diverse needs in the market.

Market Opportunities

• Expansion of Digital Insurance Platforms:The rise of digital insurance platforms presents a significant opportunity for market growth. With over97%of the population using smartphones, insurers can leverage technology to offer user-friendly applications that simplify policy management and claims processing, enhancing customer engagement and satisfaction.
• Customization of Insurance Products:There is a growing demand for customized insurance products tailored to individual needs. As consumers seek more personalized coverage options, insurers can capitalize on this trend by developing flexible policies that cater to specific demographics, such as young drivers or families, thereby increasing market penetration and customer loyalty.