Saudi Arabia Health Insurance Market

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. The rising consumer awareness towards health management is propelling the demand for insurance policies, which is driving the market across the country.

Saudi Arabia Health Insurance Market Recent Analysis:

• Major Market Drivers: The rising focus among insurance policy providers on introducing programs that fit the exact needs of individuals is propelling the market. Additionally, exorbitant bills related to medical services, such as the price of surgery, hospital stays, emergency room visits, doctor visits, diagnostic tests, etc., are also acting as significant growth-inducing factors.
• Key Market Trends: The increasing availability of various arrangements for consumers across Saudi Arabia, such as public or government health insurance, managed care plans, indemnity, private health insurance, point-of-service (POS) plans, etc., that cater to their changing requirements is one of the emerging trends bolstering the market in the country.
• Challenges and Opportunities: Delays in claim settlement are among the major challenges faced by the market in Saudi Arabia. However, the heightened focus of primary industry players on health and wellbeing is bolstering the demand for comprehensive health and wellness insurance solutions. This, in turn, is anticipated to fuel the market across the country over the forecasted period.

Saudi Arabia Health Insurance Market Trends:

Increasing Government Initiatives

The growing burden of medical services, coupled with the inflating occurrence of chronic diseases, is escalating the need for enhanced health insurance policies across the country. Consequently, government authorities in Saudi Arabia are launching policies that mandate health coverage for all nationals and non-nationals. As part of the Vision 2030 Transformation Programs, Saudi Arabia established a national health transformation policy that is based on shifting preferences towards value-based care services. The Ministry of Health (MOH) in Saudi Arabia is the primary government supplier and financier of health care services, operating 244 hospitals with approximately 33,277 beds and roughly 2037 primary health care (PHC) centers. Moreover, referral hospitals, including the King Faisal Specialist Hospital and Research Centre, the Armed Forces Medical Services, ARAMCO's hospitals, the Royal Commission for Jubail and Yanbu's Health Services, and the Red Crescent Society are some of the other government bodies operating in the country. Regulatory authorities are focusing on the "welfare state" approach, which is elevating the Saudi Arabia health insurance market revenue. For instance, 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.

Growing Popularity of Insurtech

The emerging digital technologies and the widespread IoT utilization in health insurance are augmenting the market across the country. Moreover, the introduction of health insurance mobile applications incorporating advanced technologies, including the Internet of Things (IoT), big data analytics, artificial intelligence (AI), predictive analysis, etc., to streamline the claims process and policy management also represents one of the Saudi Arabia health insurance market recent opportunities. For instance, in August 2023, Alma Health partnered with Arabian Shield, a prominent cooperative insurance company, which is regulated by the Saudi Central Bank and the Council for Cooperative Health Insurance, to provide a simplified healthcare experience to individuals through its end-to-end digital solution. Besides this, various insurtech companies are providing intuitive online platforms and mobile apps that enable customers to purchase policies, submit claims, and access information with ease, thereby strengthening the market across the country. For example, in October 2022, Walaa Insurance, one of the insurance companies in Saudi Arabia, entered a strategic technology partnership with Software AG to transform its technology landscape within the healthcare sector. Furthermore, key insurance providers are collaborating to expand their product offerings, which is expected to bolster the market over the forecasted period. For instance, in March 2024, Airlines Corporation in Saudi Arabia signed a one-year health insurance contract with Bupa Arabia to provide cooperative insurance to the airline's employees and retirees.

Expanding Geriatric Population

As individuals age, they typically require more healthcare services and treatments. The rising aging population across the country is 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. This, in turn, is propelling the Saudi Arabia health insurance market's recent price. Moreover, the unique healthcare needs of the elderly population have given rise to specialized insurance products tailored to their requirements. The latest Healthcare Statistics 2023 Report revealed that approximately 37.5% of adults in Saudi Arabia hold private health insurance, with 21.8% directly paying for healthcare services. Besides this, the increasing medical services are also acting as growth-inducing factors. For instance, 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 elevate the market over the forecasted period.

Saudi Arabia Health Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the Saudi Arabia health insurance market forecast for the country level for 2024-2032. Our report has categorized the market based on type and service provider.

Breakup by Type:

• Individual
• Group
   

Currently, group holds the majority of the total market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes individual and group. According to the report, the group represented the largest segmentation.

The implementation of health insurance regulations for expatriates and the inflating emphasis on employee welfare is driving the growth in this segmentation. Moreover, various companies are increasingly providing comprehensive group health insurance policies and schemes to improve employee benefits. For instance, Cigna Insurance Saudi Arabia provides comprehensive coverage for the medical needs of large corporates, which is fully compliant with the Council of Cooperative Health Insurance (CCHI) requirements. Besides this, major insurers like Tawuniya, Bupa Arabia, and MedGulf dominate the market in the country, offering a wide range of group plans that cater to several corporate needs. These plans typically cover outpatient services, maternity care, hospitalization, and chronic disease management.

Breakup by Service Provider:

• Public 
• Private
   

Private exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the service provider. This includes public and private. According to the report, private represented the largest segmentation.

The introduction of private health insurance policies that offer value-added services like wellness programs, preventive care, and telemedicine consultations is one of the Saudi Arabia health insurance market recent trends. Apart from this, the Saudi Vision 2030 initiative aims to improve healthcare quality and accessibility, thereby encouraging participation from the private sector to alleviate pressure on public health services. For example, the National Transformation Program (NTP) was launched in June 2020 across Saudi Arabia to establish strategic objectives, such as improving the efficiency of the healthcare sector, attracting foreign investment, encouraging private-public partnerships, elevating the use of information technology, etc., for the Saudi Food & Drug Authority (SFDA), the Ministry of Health (MOH), and the Ministry of Investment (MISA).

Competitive Landscape:

• The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major Saudi Arabia health insurance market companies have also been provided.
• The market's competitive landscape is characterized by multiple players, including established brands, emerging startups, and specialty manufacturers. Presently, leading companies are investing in digital technologies to enhance customer experiences. They are also leveraging data analytics and artificial intelligence (AI) to better understand customer needs, identify fraud, and improve underwriting processes. Moreover, many health insurers in the country are offering wellness programs and incentives to encourage policyholders to adopt healthier lifestyles. 

Saudi Arabia Health Insurance Market Recent Development:

• March 2024: The Insurance Authority (IA) became the unified and independent regulator in the health insurance sector across the Kingdom of Saudi Arabia (KSA). 
• February 2023: Cigna Worldwide Insurance Company received an official branch license from the Saudi Central Bank to operate as a health insurer in the country.
• October 2023: Fahad Al-Jalajel, the Minister of Investment in Saudi Arabia, allocated 15% of the national budget to the healthcare industry. 

Saudi Arabia Health Insurance Market Report:

• 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 assists 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.