The gross premiums generated by Arab insurance firms reached approximately $50.8 billion by the end of 2023, an increase from around $46.5 billion at the end of 2022, marking a growth rate of 9.2 percent, according to a new report by the Arab Monetary Fund (AMF) and published by WAM.
The Fund indicated that global gross written premiums totaled about $6.78 trillion at the close of 2022, suggesting that the insurance sector in the Arab region still has significant room for expansion, given that the average premiums written account for only about 1.6 percent of the GDP of Arab nations.
Notably, insurance companies in Saudi Arabia and the UAE led the region in gross written premiums, collectively exceeding $32 billion, with Saudi Arabia contributing roughly $17.45 billion and the UAE $14.71 billion by the end of 2023.
According to the AMF, life insurance premiums made up 18.8 percent of the total premiums in the Arab insurance sector for 2023, while non-life general insurance premiums constituted 81.2 percent.
Operational efficiency
The AMF also reported that the average compensation paid in relation to written premiums was about 54.6 percent by the end of 2023. Additionally, the average return on assets was recorded at 2.2 percent at year-end. This enhanced operational efficiency among insurers is attributed to a reduction in the compensation ratio relative to gross written premiums and solid profitability across most Arab countries.
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