Vehicle insurance growth fell for the first time in 7 years

According to its analysis, Al-Eqtisadiah newspaper showed that there was a decline in vehicle insurance during 2017, which is the first negative growth compared to what it was the last year 2016 AD, where the decline is expected to be 8.7%.

According to the data issued by the Arab Monetary Agency, on which the analysis was based, the expected total insurance premiums for cars by the end of the current year may reach about 11.1 billion riyals, compared to 12.15 for the last year of 2016, with a difference of about 1.05 billion riyals.

This decline is the first decline in annual growth in 7 years, according to the data available for the past years, after there was positive growth in car insurance during the past years, reaching 13% in 2016 and 35% in 2015, as well as 26% in 2014. According to this analysis, the value of the premiums announced from the beginning of this year until the end of the third quarter amounted to 8.99 billion riyals, registering a decrease of about 7.1%, compared to the same period last year, with a difference of 684 thousand riyals.

The figures also indicate that the decline in growth during this period is due to the total premiums acquired during the second quarter, which came about 17% less than they were for the same period, and also the decline in insurance premiums for the first quarter by about 3.3% for the same similar period, It is known that the first quarter is always considered the most important, as it constitutes 37% of the installments during the year.

Vehicle insurance premiums continued to decline in the fifth consecutive quarter, as they achieved a significant decline in insurance premiums during the third quarter of this year and on an annual basis of 1.9%. While there is an expectation that the fourth quarter installments will be the lowest quarterly installments in three years, and the fourth quarter car insurance premiums are expected to reach about 1.9 billion riyals.