New Motor Insurance Pricing Standards in Saudi Arabia

Saudi Arabia's Insurance Authority has introduced six new regulatory standards for pricing motor insurance, aiming to keep premiums fair, technically justified, financially sustainable, and above acceptable actuarial levels. The move tightens oversight of how insurers set their prices and works to protect fair competition in the market.

Under the new standards, insurers must base their pricing on sound actuarial principles and clear underwriting rules. They are required to rely on reliable data and experience to support the prices they offer, rather than setting figures arbitrarily.

The standards also prohibit insurers from relying solely on the prices set by other companies when determining their own. In addition, insurers must provide the Insurance Authority with the criteria, bases, and methodologies used in their pricing, giving the regulator a clearer view of how premiums are calculated.

Why it matters

For residents and expats who drive in Saudi Arabia, motor insurance is a mandatory and recurring cost. Rules that require pricing to be technically justified and not set below acceptable actuarial levels are intended to keep the market stable and prevent unsustainable pricing that could affect claims and coverage over time.

The measures form part of the Insurance Authority's broader regulatory framework for motor insurance. This is a regulatory compliance change directed at insurance companies, not a consumer service with a published fee, and there is no separate application channel for drivers. The authority's regulations page for these rules was last updated on 23/08/2026.

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