RIYADH: Digital transformation could be key for insurance companies to remain competitive, a senior KMPG official in Saudi Arabia said, as the sector recorded gains in 2021.
According to its “The Pulse of the Insurance Sector” report, where 28 Saudi companies were analyzed, written premiums reached SR31.81 billion ($84.79 billion) by the end Q3 last year.
That was a 7.7 percent increase from the same period in 2020— a year that ushered in many changes across different consumer industries in the region and beyond.
“Given the world’s constant changes, it is becoming increasingly important for insurance companies to consider using data analysis, artificial intelligence, and other means of digital transformation to remain competitive,” Uwais Shehab, Head of Financial Services at KPMG Saudi Arabia, said.
The growth in the Kingdom’s insurance sector was led by the automotive and medical sectors, which contributed the most to the gross written premiums, jumping 79 percent and 81 percent respectively.
Total assets amounted to SR68.03 billion ($1813 billion), while total equity stood at SR18.93 billion; an increase of 5.4 percent and 4.9 percent respectively.
The net profit of the sector decreased by 62.6% compared to the third quarter of 2020, when it reached SR1.438 billion, in the Q3 2021
