Saudi Arabia Health Insurance Market
The Saudi Arabia health insurance market size reached US$ 7.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 12.1 Billion by 2032, exhibiting a growth rate (CAGR) of 5.4% during 2024-2032.
Report Attribute
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Key Statistics
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Base Year
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2023
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Forecast Years
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2024-2032
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Historical Years
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2018-2023
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Market Size in 2023
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US$ 7.4 Billion |
Market Forecast in 2032
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US$ 12.1 Billion |
Market Growth Rate 2024-2032 |
5.4% |
Saudi Arabia Health Insurance Market Analysis:
- Major Market Drivers: The increasing population and diversification of the nation’s economy are among the key factors driving the Saudi Arabia health insurance market. Furthermore, the increasing prevalence of chronic ailments across the nation is further contributing to the increasing adoption of health insurance.
- Key Market Trends: The rising expense of hospital stays, and surgical procedures is a key trend for the Saudi Arabia health insurance market. The cost of medical services, among other things, includes the price of surgery, doctor visits, hospital stays, emergency room visits, and diagnostic tests. Thus, this rise in medical service prices is fueling the market's expansion.
- Challenges and Opportunities: Delays in claim settlement are one of the significant challenges faced by the Saudi Arabia health insurance market. However, the heightened focus on health and well-being is bolstering the demand for comprehensive health and wellness insurance solutions.
Saudi Arabia Health Insurance Market Trends:
Rising Cost of Medical services
Rising medical service expenses, along with the growing prevalence of chronic diseases, are primarily driving the need for health insurance across the country. In addition to this, the government authorities of Saudi Arabia are taking initiatives to promote the adoption of health insurance. For instance, the Saudi Arabian government mandates health coverage for all nationals and non-nationals. The country started implementing the mandatory unified health insurance scheme in July 2016, and the system is fully operational from 2017 onward. All private sector organizations must provide health insurance to their employees and dependents, including spouses, unmarried daughters, and male children under 25. Moreover, in October 2023, Saudi Arabia’s Health Minister, Fahad Al-Jalajel, revealed the nation's plans to roll out comprehensive state-funded insurance coverage for all citizens by 2026. Al-Jalajel outlined the key features of the National Insurance Program, emphasizing its unique aspects, such as being state-funded with no need for annual renewal and ensuring coverage for a lifetime. Such initiatives are anticipated to propel Saudi Arabia health insurance market growth in the coming years.
Integration of Technology with Insurance
The widespread adoption of digital technologies and IoT utilization in health insurance is further creating a positive outlook for the overall market. The insurtech (insurance and technology) market is experiencing robust growth as a result of changing customer expectations and the increasing demand for seamless digital experiences. In addition to this, insurtech companies are capitalizing on this demand by offering intuitive online platforms and mobile apps that enable customers to purchase policies, submit claims, and access information with ease. For instance, in October 2022, Walaa Insurance, the leading insurance company in Saudi Arabia, entered a strategic technology partnership with Software AG to transform its technology landscape. Software AG's hybrid digital integration platform will allow Walaa to launch new products, services, and channels in the Saudi market with an enhanced customer focus. With its leadership position in the Saudi insurance market, the technology partnership will allow Walaa's existing and new customers to experience innovative products and digital services from Walaa across multiple channels. The integration of technology with health insurance is significantly shaping the Saudi Arabia health insurance market outlook.
Growing Geriatric Population Across the Country
As individuals age, they typically require more healthcare services and treatments. The rising aging population across the country is also bolstering the market for health insurance. According to the data published by Ipsos, on average, around 50 out of every 100 people in Saudi Arabia will be over 65 years old in 2050. Besides, older individuals often face higher healthcare costs due to age-related health conditions and the need for more frequent medical interventions. Moreover, the unique healthcare needs of the elderly population have given rise to specialized insurance products tailored to their requirements. The King Salman Social Center is a prominent organization dedicated to providing comprehensive care and support for the elderly in Saudi Arabia. The center offers residential care services, medical assistance, social activities, and rehabilitation programs. Initiatives like these are anticipated to significantly contribute to the Saudi Arabia health insurance market share.
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the Saudi Arabia health insurance market report, along with forecasts for the period 2024-2032. Our report has categorized the market based on type and service provider.
Breakup by Type:
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Breakup by Service Provider:
Competitive Landscape:
- Competitive Structure
- Key Player Profiles
Saudi Arabia Health Insurance Market Recent Development:
- March 2024: Saudi Arabian Airlines Corporation has signed a one-year health insurance contract with Bupa Arabia for Cooperative Insurance. Started 6 March 2024, the Saudi insurer will provide health insurance services to the airline's employees and retirees.
- February 2023: Cigna Worldwide Insurance Company announced that it has received an official branch license from the Saudi Central Bank (SAMA) to operate as a health insurer in the Kingdom of Saudi Arabia.
- October 2022: Walaa Cooperative Insurance Company announced the merger of SABB Takaful Company into Walaa Cooperative Insurance Company.
Report Coverage:
- Base Year Considered: 2023
- Historical Data Coverage: 2018-2023
- Market Forecast: 2024-2032
- Currency: US$
- Geography Covered: Saudi Arabia
- Segments Covered: Type and Service Provider
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia health insurance market from 2018-2032.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia health insurance market.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia health insurance industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.