Saudi insurance sector surges 33%

Saudi Arabia's insurance sector has growth since motor and health insurance was made compulsory. (Getty Images)

The insurance market in Saudi Arabia grew almost 33% in 2006 after the world's largest oil exporter made motor and health insurance compulsory, the central bank said on Monday.

Gross premiums paid to Saudi insurers by clients rose to 6.9 billion riyals ($1.84 billion) from 5.2 billion riyals in 2005, the Saudi Arabian Monetary Agency, or central bank, said in a report.

Health insurance premiums, which accounted for about a third of the total market, grew 64% to 2.2 billion riyals, according to the report on the bank's website.

The central bank gave Saudi insurers until March 2008 and to get a licence or stop operations. The bank has since licenced 18 companies and is considering 24 applications, the bank said.

All licensees must agree to sell shares to the public.

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