Despite uncertainties, great majority of insurance CEOs in Saudi Arabia are confident in their company's growth prospects over the next three years, though talent gaps could bear negative impacts, according to a report released by the global services firm, KPMG.
Saudi Arabia’s insurance industry has long been a vital player in the region, becoming one of the largest insurance markets in the GCC, said a recent report published by KMPG. The report, titled 'Navigating Economic Transformation with Confidence' provided statistics with insurance views on the prospects of the insurance market in Saudi.
The sector has experienced notable growth and transformation over the past decade, driven by a combination of regulatory reforms, evolving market dynamics, and increasing demand for comprehensive risk management solutions. In particular, the sector is benefitting from Vision 2030 which is designed to diversify the Kingdom‘s economy away from oil dependency. As a result, insurance has become a critical component of Saudi Arabia‘s financial landscape, said the report.
The government, through various regulatory frameworks and initiatives, has contributed significantly to the growth of the insurance market. The demand for insurance products continues to rise as the country undergoes rapid economic diversification and modernises key infrastructure projects. Moreover, with rising awareness among individuals and businesses about the importance of financial protection, the insurance industry is on a solid growth trajectory.
On driving growth in an uncertain economy, the report finds that 74% of insurance CEOs are confident in their company’s growth prospects over the next three years. As for enabling the enterprise with Gen AI and digital transformation, 81% of insurance CEO respondents said that Gen AI is now a top investment priority, despite ongoing economic uncertainty.
As for attracting talent and shaping the workforce, 62% of CEOs believe that talent gaps could negatively impact their organisation’s growth over the next three years. Meanwhile, on embracing ESG to achieve measurable outcomes, 70% expressed willingness to take a stand on a contentious issue but 54% say that stakeholder expectations change faster than they can adapt.