Saudi Arabia’s insurance broking landscape is undergoing a significant transformation, driven by regulatory advancements, economic diversification, and rapid digitalization. As the Kingdom accelerates toward Vision 2030, the demand for sophisticated risk management solutions is growing, particularly in areas such as cyber security, ESG-linked coverage, and professional liability. In an increasingly complex market, brokers play a pivotal role in bridging the gap between insurers and clients, ensuring businesses have access to tailored risk solutions that align with a shifting economic and regulatory landscape. In this exclusive interview with Middle East Insurance Review (MEIR), Rami Al Hoshan, General Manager of ACE Gallagher Arabia Insurance Brokers in Saudi Arabia, shares insights into the current state of the insurance broking sector, the challenges faced by brokers, and the strategies needed to stay competitive in an AI-driven, digital-first world.

How would you describe the current state of the insurance broking business in Saudi Arabia?

Saudi Arabia’s insurance sector is going through a transformation, shaped largely by regulatory shifts, technological advancements, and an evolving risk landscape. Market expansion has been particularly pronounced in health, motor, and construction insurance, reflecting both economic activity and regulatory mandates. At the same time, Vision 2030 is acting as a catalyst for the diversification of risk management needs, spurring demand for sophisticated solutions in cyber security, professional liability, and ESG-linked coverage. Against this backdrop, insurance brokers such as ACE Gallagher play a pivotal role in bridging the gap between insurers and clients, ensuring businesses and individuals have access to tailored risk solutions that align with a rapidly changing economy. Increasing awareness of insurance as a critical component of financial planning is further driving demand for advisory-led brokerage services.

What are some of the challenges the broking community is facing in its operations?

While the opportunities for growth are significant, brokers must navigate a landscape that demands both agility and deep expertise. Regulatory compliance remains at the forefront, with evolving insurance authority mandates requiring firms to enhance transparency and reporting. The competitive landscape is also intensifying, as international players, InsurTech firms, and direct insurer-client relationships challenge traditional broking models. Similar to other established players, ACE Gallagher is responding by investing in digitalization to maintain competitiveness. Digital transformation is reshaping market dynamics, forcing brokers to rethink their value proposition as AI-driven underwriting and automation become industry norms. Another critical factor is talent acquisition—finding and retaining skilled professionals who possess both technical acumen and strategic risk advisory capabilities has become an industry-wide priority. Economic fluctuations further compound the complexity, as inflation, the geopolitical landscape, and shifting client risk appetites introduce new variables into premium pricing and service structures.

Brokers are also contending with shifting client expectations, where personalized solutions and real-time service are now essential. The ability to interpret complex data sets, anticipate emerging risks, and provide proactive insights has become a necessity. As insurance products become more sophisticated, the challenge of ensuring clients fully understand the nuances of their policies has grown, requiring brokers to elevate their advisory capabilities. Moreover, geopolitical shifts, supply chain vulnerabilities, and climate-related disruptions are influencing underwriting strategies, compelling brokers to adapt and advise on evolving risk trends.

What steps are brokers taking to stay relevant and competitive in the increasingly digital and AI-driven world?

Innovation and strategic evolution are at the core of how brokers are adapting to the digital era. Investments in AI-powered analytics and automation are enabling firms to enhance efficiency while delivering greater accuracy in risk assessment. The role of the broker is also shifting from transactional intermediary to strategic risk advisor, where a deep understanding of clients’ businesses and industries is paramount. In this new paradigm, partnerships with InsurTech firms, reinsurers, and global networks are proving invaluable, allowing brokers to leverage new technologies and expand their service offerings. Enhancing the client experience has become another area of focus, with digital platforms now offering self-service capabilities, real-time claims tracking, and data-driven risk management insights. Simultaneously, firms are doubling down on talent development, ensuring professionals are equipped with the expertise necessary to navigate an increasingly complex risk landscape.

Customer-centricity is another driving force behind the industry’s evolution. For example, ACE Gallagher is leveraging data-driven insights to provide tailored solutions that address industry-specific challenges such as cybersecurity, which has become a critical concern for businesses across sectors, necessitating comprehensive policies that mitigate financial and reputational damage. Similarly, ESG-related insurance products are gaining traction, with companies seeking coverage that aligns with their sustainability commitments. To meet these diverse needs, brokers are expanding their knowledge base, deepening relationships with global insurers, and offering highly customized risk solutions that go beyond traditional coverage.

How do you see the future of the insurance broking business in Saudi Arabia?

The trajectory of the industry points toward a future where digital transformation, regulatory evolution, and market sophistication will shape the next phase of growth. For us at ACE Gallagher, this means harnessing technology more effectively, not just as a tool for efficiency but as a fundamental part of the client engagement and risk assessment process. AI-driven analytics, blockchain applications in policy management, and parametric insurance models are likely to redefine how risk is understood and priced. Regulatory frameworks will continue evolving, raising industry standards and enhancing transparency. Meanwhile, the emergence of specialized insurance solutions, particularly in cyber risk, ESG-related coverage, and supply chain disruptions, will present new business frontiers. Consolidation among market players is also expected to accelerate, as firms seek scale advantages and operational efficiencies. In this dynamic environment, those who prioritize adaptability, innovation, and an unwavering commitment to client-centric service will be best positioned for sustained success.

The insurance broking business in Saudi Arabia will also see deeper integration with global markets, as businesses require risk solutions that extend beyond national borders. The influx of multinational companies and large-scale infrastructure projects will drive demand for sophisticated, multi-layered insurance programs, positioning brokers as critical advisors in navigating cross-border risks. Additionally, as the Kingdom continues its economic transformation, the expansion of new industries—including renewable energy, advanced manufacturing, and digital economy sectors—will necessitate innovative insurance products tailored to their unique exposures.

Education and awareness will also play a defining role in shaping the industry’s future. As risk management becomes a more integral component of corporate strategy, brokers will need to cultivate a stronger advisory presence, equipping clients with the knowledge and tools to proactively manage emerging threats. Firms that embrace this shift and position themselves as thought leaders in risk mitigation and strategic insurance planning will cement their relevance in an ever-evolving market.

Brokers central to Vision 2030 insurance goals – Market Profile – Saudi Arabia