International News

Saudi Arabia's Insurance Market Poised for Transformation - Saudi Arabia's general insurance market is on a trajectory of rapid growth, with gross written premiums expected to rise from SAR 68.8 billion ($18.4 billion) in 2024 to SAR 105.3 billion ($28.1 billion) by 2029, reflecting a CAGR of 8.9%. This growth is driven by regulatory reforms, economic diversification, and increased consumer awareness of risk management.

In 2024 alone, the market is anticipated to expand by 9.4%, supported by developments in sectors such as motor and health insurance. The government's focus on infrastructure development and public-private partnerships is also expected to play a significant role in driving market growth.

Weather Risks Reshape Travel and Insurance Decisions

The increasing prevalence of extreme weather events is reshaping how travelers approach leisure trips and the insurance options they consider. A recent survey conducted by Aon Affinity revealed that 56% of Americans are now less likely to book travel to destinations prone to severe weather conditions like hurricanes or blizzards. This represents a seven percentage-point increase from a similar survey conducted in 2019, highlighting a growing trend of caution influenced by climate risks.

Beth Godlin, President of Aon Affinity Travel Practice, emphasized that climate risks are becoming a significant factor in travel planning, particularly among women and baby boomers. More than half of the surveyed population, especially these demographics, now critically evaluate the likelihood of adverse weather conditions when selecting destinations and planning their itineraries.