Real estate activity and major residential and economic projects in the Kingdom of Saudi Arabia are witnessing a great prosperity, within the objectives of Saudi Vision 2030, which aims to enhance market stability and achieve sustainable development, which contributed to a significant expansion of the real estate insurance sector in Saudi Arabia in recent years.
Real estate insurance in the Kingdom of Saudi Arabia in recent years.
Historic jump in real estate insurance premiums in Saudi Arabia
The written premiums in the property and fire insurance branch - which includes real estate - reached about 803 billion and 878 million Saudi riyals during the third quarter of 2024, compared to 453 billion riyals in the same period of 2023, a growth rate of more than 80%, according to data issued by the Saudi Central Bank “SAMA”.
Rapid growth and strong future prospects
The Kingdom's property and casualty insurance market is estimated to be worth USD 9 billion 620 million in 2025 and is expected to reach USD 20 billion by 2030, at a CAGR of 16.4%, according to a report by Mordor Intelligence.
Data from the CEI Platform revealed that the Kingdom's property and casualty insurance market is expected to grow at a CAGR of 16.4%, according to a report by Mordor Intelligence. CEIC Data also revealed that net written premiums for the property and fire branch reached SAR 72,734 in September 2023, compared to SAR 26,000 in June of the same year, reflecting the expansion of the customer base and insured projects, while the Saudi insurance market as a whole grew by 20.4% during 2024, the highest growth pace in a decade, confirming the success of regulatory reforms and transformation programs in the financial sector.
According to a report by Mordor Intelligence, this value will reach $20 billion by 2030, at a CAGR of 16.4%.
Types of real estate insurance services
The real estate insurance coverage in the Kingdom includes several main branches, most notably:-
- Insurance for construction and engineering projects to cover risks during implementation and delays in completion.
- Insurance of buildings and property against fire and disasters to protect residential and commercial investments.
- Construction defects and civil liability insurance, which is one of the most important products required in the modern housing market.
Existing challenges for real estate insurance in Saudi Arabia
The real estate market in the Kingdom faces some challenges with regard to real estate insurance, including poor insurance awareness and the low penetration of real estate insurance, which does not exceed 1.5% of the total insurance market, but experts recommend including mandatory insurance within real estate financing contracts and expanding coverage to include new risks, which contributes to enhancing investment protection and raising the confidence of investors and consumers alike.
Real estate insurance in the Kingdom faces some challenges with regard to real estate insurance, including poor insurance awareness and low penetration of real estate insurance, which does not exceed 1.5% of the total insurance market.
