5 min
Economic diversification, infrastructure development, regulatory reforms, and population growth have led to significant expansion of the GCC’s insurance industry. As of 2024, the non-life segment accounted for 86.9% of total premiums written in the region, an increase from 84.8% in 2019. This trend is expected to continue, with the non-life segment projected to grow at a CAGR of 5.2% by 2030. While both life and non-life insurance segments together contribute to the overall sector growth, non-life insurance continues to dominate the region’s insurance landscape, remaining the primary driver of premium expansion across GCC markets.
Mandatory Insurance Schemes
Implementation of mandatory insurance lines for health, motor, travel, and employment have led to a rapid expansion of the non-life segment in the GCC. In Saudi Arabia, health insurance accounted for 56% of its total GWP in 2024, while general insurance (including motor and other non-life) accounted for 34%. For the UAE, health and motor insurance collectively accounted for around 68% of the total non-life insurance segment. Notably, the country witnessed a higher growth in motor insurance premiums, increasing its contribution to the non-life segment to 14.0% in 2024, driven by the severe rainfall and flooding in April 2024 that resulted in a significant surge in claims. The introduction of the Involuntary Loss of Employment scheme in 2023 has further expanded the country’s non-life base by bringing a larger workforce into the insurance net.
The non-life segment in Qatar is estimated to grow at a CAGR of 4.9% from 2025 to reach US$ 2.8 billion by 2030, primarily supported by the implementation and expansion of mandatory health and motor insurance coverage. These two lines also play a key role in supporting non-life growth in Kuwait and Oman, which are expected to grow at CAGRs of 5.6% and 2.4%, respectively. Rising urbanization, increasing vehicle ownership and schemes targeting expatriates and private-sector employees continue to support demand for health and motor insurance products. These factors ensure a consistent flow of premiums and reinforce the role of mandatory insurance as a foundational pillar of insurance market growth across the GCC.
Infrastructure and Economic Diversification
As governments move beyond hydrocarbon dependence, increased investment in sectors such as tourism, manufacturing, logistics, and real estate are driving broader economic activity. Furthermore, focus on attracting foreign investment, increasing SME contribution, and developing mega projects is boosting overall consumption. Consequently, the contribution of the non-oil economy to the GDP across GCC countries, today, ranges between 53% and 77%.
Large-scale investment programs are underway, with Saudi Arabia advancing multi-trillion-dollar Vision 2030 plans and the PIF driving capital deployment to support non-oil growth. Meanwhile, the UAE has announced several liberalization initiatives to attract US$ 65.4 billion in foreign investment annually by 2031 in sectors such as industry, logistics, financial services, renewable energy and IT. Substantial growth in infrastructure development is also being witnessed across the GCC, with total contract awards reaching US$ 273 billion in 2024, marking a record high for the region. Saudi Arabia accounted for 52.8% of total project awards, followed by the UAE at 29.8%. In 2025, Kuwait witnessed heightened infrastructure activity, with project awards reaching approximately US$ 13 billion.
T.M. Lakshmanan, Chief Executive Officer of Alpen Capital notes that “Over the next five years, the region’s insurable asset base is expected to rise significantly with the planned completion of large-scale infrastructure projects, benefiting the non-life segment.”
Continued expansion of the non-oil economy along with large-scale infrastructure and social projects are increasing insurable assets across the region. These developments are expected to drive demand for insurance coverage across property, engineering, and liability segments.
Favorable Demographic Profile
The GCC population is projected to grow to 69.3 million by 2031 with expatriates forming a significant share of the workforce. As of 2025, approximately 66% of the region’s population comprises of young and working-class professionals, which is enrolled in employer-sponsored health insurance, yielding a steady premium generation. High urbanization rate, which is above 80% and expected to reach 90% by 2050, increases demand for insurance lines such as health, motor, and property. The region is also projected to witness an increase in old-age population (>50 years) and reach 14.2% of total population in 2030, resulting in higher premiums on health insurance.
At the same time, strong income levels enhance the region’s insurance potential with GDP per capita (PPP) reaching ~US$ 74,580 in 2025 and expected to grow further. However, insurance penetration remains relatively low at 1.9% of GDP, compared to the global average of 6.5%, indicating significant room for expansion. As these factors of high purchasing power and population growth continue to evolve, they are expected to further accelerate demand for non-life insurance and support the broader growth of the GCC insurance industry.
In conclusion, regulatory support, economic diversification, infrastructure expansion, and favorable demographics continue to drive premium growth and expand the region’s insurable asset base. Despite relatively low penetration, rising income levels, urbanization, and population growth present significant untapped potential. Together, these factors position the non-life segment as the dominant force in the market, underpinning long-term growth of the GCC’s insurance industry.
5 min