The Saudi insurance market is considered new when compared to similar markets in the developing countries. The insurance activities in the market were centered basically around the imports & oil until 1970. Intermediaries for foreign companies were controlling the market. In addition, the insurance principle was not well accepted due to religious reasons. In 1983, the concept of the Cooperative Insurance appeared which was in alignment with the Islamic principles. The appointment of SAMA (Saudi Arabian Monetary Agency) as the industry regulator and the approval of the insurance executive regulations will have a positive impact on the insurance sector in Saudi Arabia and will lead to market stabilization and growth. Recent market development can be summarized as follows:

• Privatization
• The Approval of the insurance executive regulations.
• Insurance law implementation rules.
• The start of licensing Insurance companies.
• The implementation of the compulsory "Motor Third Party Liability" insurance.
• The implementation of the compulsory liability insurance for foreign vehicles.
• The approval of the "Cooperative Health Insurance Program" and establishing the Health Insurance Council.

The key landmarks for the Saudi Insurance Industry can be summarized as follows:

• 1983 G: Introduction of Cooperative Insurance Concept.
• 1986 G: NCCI (the 1st licensed National Company) was established.
• 1988 G: Introduction of Compulsory Insurance on Government Contracts.
• 1999 G: Introduction of Cooperative Health Insurance Act.
• 2002 G: Motor Liability (Ruksha) Insurance became compulsory.
• 2003 G: Insurance of foreign (transit) vehicles became compulsory.
• 2005 G: Introduction of the Cooperative Insurance Law.
• 2005 G: Introduction of Compulsory Professional Indemnity Insurance (i.e. Medical Malpractice, Brokers, etc.)