Personal property insurance in various cities across the Kingdom has seen a significant decline, reaching as high as 90 percent, due to a lack of awareness among many who could benefit from this insurance regarding its details, which has led companies to maintain high premiums for this type of insurance policy.

This was clarified by sources specializing in the insurance sector, noting that the decline in insurance growth for personal property and the commercial sector was a result of low cultural awareness of insurance, noting that only one in ten people has any understanding of property insurance, The sources noted that the property insurance sector has suffered a series of losses, such as the two gas explosions in Riyadh and the sugar factory incident in Jeddah, which have impacted the Kingdom’s insurance market.

The sources emphasized the importance of establishing a standardized policy for public and private property insurance; given environmental changes and increasing economic growth, to protect and compensate for property and assets in the event of climate-related losses or natural disasters. They noted that urban and population growth are among the drivers for developing such a property insurance policy, given that the majority of commercial sectors and individuals lack «awareness» of the importance of this type of insurance for preserving assets and property.