In a pivotal step reflecting the wise leadership’s interest in developing the financial sector and strengthening its resilience, the Chairman of the Board of Directors of the Insurance Authority, Abdul Aziz Al-Bouq, and the CEO of the Authority, Engineer Naji Al-Tamimi, expressed their deepest gratitude and appreciation to the Custodian of the Two Holy Mosques and His Highness the Crown Prince, on the occasion of the issuance of the approval by the esteemed Council of Ministers of the National Strategy for the Insurance Sector.
A key pillar of the Kingdom's Vision 2030
This generous approval is the culmination of tireless efforts aimed at regulating and developing the insurance sector in the Kingdom. Abdulaziz Al-Bouq explained that this unwavering support from the leadership is the cornerstone of the sector's launch towards broader horizons. The Insurance Authority has worked to formulate this national strategy to be a key driver for unlocking the strengths of the Saudi market, with the goal of transforming it into one of the fastest-growing and most developed insurance markets in the world.
This step gains its importance from the general context of the economic reforms taking place in the Kingdom, as the insurance sector is one of the main pillars of the Financial Sector Development Program, which is one of the executive programs of the Kingdom’s Vision 2030. These moves aim to diversify sources of income and reduce dependence on oil by building a strong and stable financial sector capable of facing future challenges.
Strategic goals to enhance protection and sustainability
Al-Bouq emphasized that the new strategy was designed to meet the leadership's aspirations and is fully aligned with the vision's objectives, as it is based on three main goals:
- Enhancing comprehensive insurance protection for individuals in society and the business sector.
- Developing a highly sustainable and efficient insurance market.
- Empowering and providing insurance coverage for various national risks.
The vital role of the insurance sector is highlighted as a key enabler of economic growth, as it contributes to providing a financial safety net that enhances investor confidence and supports the stability of the national economy in the face of global fluctuations.
Roadmap and ambitious digital targets
For his part, the CEO of the Insurance Authority, Engineer Naji Al-Faisal Al-Tamimi, described the approval of the strategy as a “comprehensive roadmap” that will guide the sector in the coming years. He indicated that the Authority will work in full integration with partners and stakeholders to implement 11 strategic programs and 72 qualitative initiatives, all aimed at achieving nine major strategic promises.
These promises include ambitious figures that reflect the scale of the transformation expected by 2030, most notably:
- Raising the contribution of the insurance sector to the gross domestic product to 3.6%.
- The number of people covered by health insurance has increased to 23 million beneficiaries.
- Expanding vehicle coverage to include 16 million vehicles.
- Doubling risk-based capital and increasing retention rates in property insurance.
Job localization and human resource development
The strategy is not limited to financial aspects alone; it also places great emphasis on human development and the localization of talent. The strategy aims to increase the number of jobs available to qualified Saudi nationals in the insurance sector to 38,500, thereby enhancing employment opportunities for Saudi youth and contributing to building a generation of experts specializing in this vital field.
It is worth noting that preparing this strategy is one of the most prominent tasks undertaken by the Insurance Authority since its establishment by a Cabinet decision in mid-August 2023, with direct support from the Financial Sector Development Program, to be the legislative and regulatory umbrella that ensures the growth and stability of this vital sector.
