Global Insurance: Comprehensive Analysis of the Saudi Insurance Sector and

Global Insurance Cooperative was established under Saudi laws regulating the cooperative insurance sector, adhering to the principle of Islamic solidarity in risk coverage. Since its inception, the company has focused on meeting local market needs by providing a comprehensive range of insurance products for individuals and businesses. Global Insurance is distinguished by its diverse solutions, including life, health, vehicle, property, reinsurance, and marine and aviation insurance. The company's development has been a response to market transformations, as it has relied in recent years on enhancing its digital presence and improving risk management. It has also focused on developing customer services by launching electronic portals and mobile applications to serve a wide range of clients. Moderate growth in premiums and profits during the period 2023-2025 reflects the company's ability to adapt to economic and regulatory changes while maintaining its cooperative approach in profit distribution and enhancing financial reserves.

Global Insurance offers a wide range of products and services that meet the needs of individuals and institutions. Among the most important products are health insurance, which includes comprehensive coverage for individuals and families with multiple options; vehicle insurance, which covers bodily injury and property damage for both first and third parties; and property insurance, which includes protection against fire, natural disasters, and theft. The company also provides life and savings insurance plans, with coverage for critical illnesses and personal accidents. In the business sector, the company offers commercial and industrial insurance policies, in addition to marine and aviation insurance for institutions dealing with shipping or international transport. It has also entered the reinsurance field, enhancing its capacity to manage large risks. The company continuously seeks to update its products in line with regulatory standards and market demand changes, focusing on providing flexible options and competitive offers to attract diverse customer segments.

Recent financial reports indicate that Global Insurance achieved significant performance growth during 2024 and 2025. The total written insurance premiums grew by an annual rate of 8-10% compared to 2023, with total revenues rising to 51 million Saudi Riyals in 2024. The net profits for shareholders reached approximately 4.2 million Riyals, an increase of about 60% from the previous year. Total assets rose to 88 million Riyals, an increase of 8% from 2023. The company maintained an operating profit margin of around 15%, while the claims ratio ranged around 70%. In the absence of listing on the financial market, the company relies on enhancing capital and reserves instead of distributing large dividends. The financial policy tends to reinvest profits to strengthen financial solvency and future expansion. These indicators reflect the company's ability to achieve sustainable growth despite economic and regulatory challenges.

The Saudi insurance sector is supervised by the Saudi Central Bank (SAMA), which ensures that companies comply with customer protection standards and market stability. The International Financial Reporting Standard for the insurance sector (IFRS 17) has been implemented since 2023, changing the way liabilities and profits are assessed, imposing greater transparency and improving financial disclosures. Risk-based capital (RBC) requirements mandate that companies maintain sufficient reserves to cover their obligations. These standards push small and medium-sized companies, such as Global Insurance, to enhance capital or consider mergers to maintain competitiveness. Additionally, new regulations have imposed liquidity and quarterly reporting requirements, increasing sector discipline and enhancing customer and investor confidence in the sustainability of companies operating within it.

The Saudi insurance sector is one of the fastest-growing financial sectors in the region, driven by Vision 2030 and localization and economic development programs. Total insurance premiums in the Kingdom reached approximately 42 billion Riyals in 2024, with expectations to reach 50 billion Riyals in 2025. The sector includes more than 27 companies, ranging from major companies like Tawuniya, Malath, Bupa, and AXA, to medium and small companies like Global Insurance. Competition in the sector is fierce, with companies relying on innovation and the development of digital products to stand out. Digital transformation has become a necessity, with mobile applications and self-service platforms emerging as key tools to attract customers. Companies are also responding to market demands by offering specialized solutions, such as cyber security insurance or large engineering projects. Economic and demographic trends, such as population growth and increased demand for health insurance, enhance growth opportunities, while regulatory challenges and capital pressure affect the strategies of smaller companies.

Global Insurance faces strong competition from large companies such as Tawuniya, Malath, Bupa Arabia, AXA, Al-Jazira Takaful, and United Insurance Company. These companies hold the largest market share due to their diverse product offerings and strong financial positions. In contrast, Global Insurance relies on providing specialized solutions and competitive pricing to attract new customer segments. Its strategies include focusing on specialized insurances, such as large engineering project insurance and digital coverages, and entering the reinsurance sector, which represents about 3-5% of the market. The company also seeks to enhance its digital channels and improve customer experience, keeping pace with shifts in consumer behavior and ensuring the company's ability to expand into new markets in the future.

The insurance sector in Saudi Arabia has witnessed a rapid digital transformation in recent years. Global Insurance was among the companies that recognized the importance of investing in technology to improve its operations and services. The company launched a new electronic portal in 2025 for managing insurance documents and claims, as well as developed a mobile application to facilitate the customer experience. These steps come in response to contemporary customer expectations who prefer to complete transactions electronically and receive support through digital channels. Modern technologies such as big data analytics, artificial intelligence, and claims processing automation have become essential tools for improving risk assessment and speeding up internal processes. Digital transformation not only enhances customer satisfaction but also enables the development of new products and expands the customer base, especially among youth and entrepreneurs.

The financial policy of cooperative insurance companies in Saudi Arabia, including Global Insurance, often focuses on enhancing reserves and reinvesting profits rather than distributing them significantly to shareholders. In recent years, Global Insurance has decided to allocate a portion of profits as a legal reserve and reinsurance reserve, distributing approximately 20-27% of distributable profits to shareholders. This approach aims to strengthen the company's financial solvency and enable it to face future risks or finance expansions. As the company continues to expand and enter new sectors, the distribution policy may change according to growth needs and capital requirements. Adhering to this policy reflects the cooperative work philosophy that balances the interests of shareholders and the long-term sustainability of the company.

The insurance sector in Saudi Arabia faces several challenges, most notably intense competition, regulatory transformations, and capital pressure. Global Insurance, as a medium-sized company, finds itself facing pricing challenges and the necessity of product innovation to ensure customer retention. New capital requirements (RBC) pose a challenge amid the need to raise financial reserves. Technological changes require the company to continually invest in digital infrastructure, or it risks losing its competitive edge. Additionally, economic fluctuations, oil prices, and inflation impact the demand for non-mandatory insurance products. Changes in consumer behavior and increased awareness of the importance of transparency and governance require the company to publish clearer periodic reports despite not being listed on the financial market.

Saudi Vision 2030 represents a strategic framework that supports insurance companies and encourages them to expand and innovate. By driving investments in infrastructure projects and new industries, the demand for industrial and commercial insurance rises. The vision also aims to increase the insurance coverage ratio among the population, especially in health and retirement insurance. Government initiatives, such as disaster insurance programs and comprehensive health insurance, support sector growth and open opportunities for Global Insurance to form strategic partnerships with government and semi-government institutions. Economic openness, improved regulatory environment, and technology adoption are all factors that enhance the company's growth opportunities, provided it focuses on innovation and improving the quality of services offered.

The ownership of Global Insurance is distributed among a group of local investors in the financial and insurance sector. Typically, the main shareholder owns about 30-40% of the capital, with the remaining shares distributed among 6 to 10 main shareholders. A specialized executive management oversees daily operations, while the board of directors is supervised by the Saudi Central Bank. There is no detailed published information about individual ownership percentages, due to the company's non-listing on the financial market. Transparency in ownership and management structure becomes increasingly important as the company aims for expansion, and it may commit to higher disclosure standards in the future if it chooses to list or attract new strategic investments.

Global Insurance enjoys strong growth opportunities amid positive dynamics in the Saudi market. The growing demand for health and commercial insurance, expansion in government projects, and increased insurance awareness among the population are all supportive factors. The company targets digital expansion and the development of electronic sales platforms, offering new services such as cyber security insurance and crisis management. The company's entry into partnerships with local and international reinsurance companies enhances its capacity to cover large risks and provides additional income sources. Geographic expansion into new areas within the Kingdom or even in Gulf countries represents a promising future opportunity. With financial discipline and ongoing innovation, the company is expected to maintain steady growth and gradual market share expansion.

As of mid-2025, the company has not announced any significant unexpected events, but the sector has witnessed important developments. These include regulatory updates from the Saudi Central Bank, the launch of new digital platforms, and partnerships with local tech companies. The market has seen mergers between medium-sized insurance companies, reflecting the sector's trend towards enhancing financial efficiency and meeting capital requirements. Global Insurance continued to develop its electronic portal and mobile applications to improve customer experience. It is also preparing to meet the requirements of IFRS 17 and update financial reports. Continued growth in insurance premiums and improved profitability of major companies are all indicators of sector stability and future growth opportunities despite regulatory and economic challenges.