How Saudi Arabia Became the World's Fastest-Growing Insurtech Market

Discover how Saudi Arabia became a fast-growing insurtech market, driven by digital adoption, regulatory reforms, AI, and Vision 2030.

The Saudi insurtech market was valued at $121.5 million in 2025 and is projected to reach $1.39 billion by 2034, representing a CAGR of 31.10%. This predicted growth points to an industry-wide shift toward digitization and a more resilient, customer-centric insurance landscape.

Accelerating digital adoption in the insurance sector is creating opportunities for global insurtechs such as Democrance to scale their operations. As the only B2B insurtech platform with a Saudi Central Bank (SAMA) approval, Democrance is enabling insurers to adapt their offerings and strategies in response to the rapidly evolving market expectations.

Since it started operating in Saudi Arabia a few years ago, Democrance has been on an exciting trajectory of growth with a greater focus on spurring local innovation and strategic partnerships, laying the groundwork for sustained transformation across Saudi Arabia’s insurance landscape.

Insurtech Market Enters New Phase of Development

As in other global markets, the insurance industry is widely known as a laggard in digital transformation; however, in Saudi Arabia, strong fintech growth and sustained policy support for technology companies place insurtech at the threshold of transformative growth.

Regulatory frameworks are accelerating this shift. In 2023, SAMA approved Insurtech Rules as part of its ongoing push to regulate digital insurance activities and encourage the adoption of digital platforms in the insurance sector.

Sharing his insights, Michele Grosso, CEO of Democrance, noted that when the company entered the Kingdom five years ago, the insurance sector was “very, very old school, paper-based, and dependent on heavy human interaction.”

These changes reflect a genuine, industry-wide desire not only to overhaul legacy systems but also to place digital capabilities at the core of insurers’ strategies—positioning digital transformation as a foundation for growth and long-term resilience.

Today, the insurtech landscape looks markedly different, as insurers embrace innovative technologies to automate workflows, optimize costs, and elevate customer experience.

According to Grosso, “Now every single insurance company is trying to catch up, trying to accelerate digital transformation, and trying to implement AI.”

“In 10 years of doing Democrance, I have never seen a place like Saudi Arabia where every single person in our industry has the urge to change and to do things differently as fast as possible,” Grosso added.

In Saudi Arabia, structural drivers are stronger than ever, including rapid economic diversification, population growth, and supportive policy reforms. Together, these elements create a compelling growth environment where digital-native platforms such as Democrance can secure first-mover advantages in a fast-growing market.

The changes point to a greater need for localized insurtech innovation, sparking a new wave of investment as companies look for ways to ensure successful digital adoption, further underscoring the scale of transformation underway in the insurance industry.

Establishing Local Presence Key to Capturing Saudi Insurtech Growth

As part of its continued expansion in Saudi, Democrance is actively collaborating with a wide range of stakeholders and industry players—including insurers and tech providers—to enhance sector penetration and operational efficiency under Vision 2030.

At the end of 2025, according to the CEO, Democrance hosted an event with the region’s largest insurance company, alongside Oracle, to discuss advancements in artificial intelligence (AI) within the Kingdom. These partnerships are helping build robust digital rails for insurance innovation and further strengthen insurtech ecosystem development.

By doubling down on its on-the-ground presence, Democrance is better positioned to identify underserved segments and unlock new growth opportunities while accelerating market reach in an increasingly competitive landscape.

Speaking about the company’s entry in Saudi Arabia, Grosso said, “With AstroLabs, we opened Democrance Arabia two years ago, and that has really helped us, first of all, to establish our presence in the kingdom. We are a lot more credible now in front of investors, in front of the insurance industry, in front of clients, and also our potential clients.”

Broadly, the Saudi insurance industry is at a pivotal inflection point, with the market poised for sustained growth and disruption. In 2024, gross written premiums grew 16.3% from the previous year to SR76.1 billion ($20.3 billion).

As the insurance industry undergoes a major shake-up, there is a clear opportunity for global insurtechs that blend global capabilities with local presence, creating solutions that strengthen and shape the future of insurance, underpinned by digital-first strategies and collaborative partnerships.