89
6.2.3. Growth Trends
Being the leading country in terms of Takaful growth, Saudi Arabia had recorded significant
growth in Takaful product offerings over the years. Health cooperative insurance has witnessed
tremendous growth since it was made compulsory by the regulators on all the expatriates in
2005 below shows that the retention ratio13 has improved across the years for both
General and Health Insurance:
FIGURE 15: R ETENTION RATIO
Source: SAMA Yearly Statistics 2018
From the figure above, the retention ratio of the General insurance and Health insurance grew
exponentially between 2005-2018 where the General insurance rose by more than 50% and
Health insurance by almost 100%, unlike the life insurance which did not witness significant
growth throughout the years.
The GWP and Net Written Premiums (NWP) are also other important indicators of the growth
of the Cooperative Insurance industry in Saudi Arabia. The GWP of the General insurance grew
from SAR 3589.9 million in 2005 to SAR 14028.4 million in 2018 below presents the
growth of the premium from 2005-2018:
13 Retention ratio = Net written premiums / Gross written premiums
40
50
60
70
80
90
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
%
General Insurance Health Insurance Protection and Saving Insurance