63 Days
Source:
الاقتصادية
Source: الاقتصادية
63 Daysالاقتصادية
Source: الاقتصادية
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Insurance market reports in Saudi Arabia indicate that the vehicle insurance sector remains above the break-even point until the first quarter of 2026, despite significant increases in policy premiums. The combined ratio index, which measures the profitability of this activity, rose to 102.5%, up from 107.3% at the end of 2025. Although it has improved, it still remains above 100%, signaling ongoing losses. Additionally, the noticeable rise in claims and operational costs in 2025 led to increased insurance expenses, with claims accounting for 84% of these costs. Despite a 16.6% increase in third-party liability premiums in 2025 and continued hikes into 2026, the vehicle insurance activity is still incurring losses. Achieving profitability requires better cost management and a reduction in claims. The Authority's review of the insurance pricing mechanism comes at a time aimed at ensuring fair prices based on technical data. There are no clear indications of a new wave of premium increases or widespread reductions; instead, pricing varies according to risk levels.
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