The after-effects of the recession, which has negatively affected most of the world, have had less of an impact on Saudi Arabia’s insurance industry, which has been thriving over the past few years. Health insurance is leading as one of the fastest growing segments in the country’s insurance sector, becoming a key growth driver for the overall market with segments like engineering insurance, motor insurance, and aviation insurance following closely behind.
There has been much interest in investing in Saudi Arabia’s private medical care since the Cooperative HealthInsurance Act in 1999. This act has provided medical insurance to all private sector workers within Saudi Arabia, successfully insuring over 8.6 million Saudi and expatriate employees and their families to date.
There are many benefits of insurance for both workers and the insurance industry. Due to the surge in the number of insured workers, insurance companies have advanced their products and services to serve the target market. The Act has also led to developments in IT utilization, training centers, and health universities, bettering the country’s technological expertise.
The role of the
Council of Cooperative Health Insurance (
CCHI) is to work towards educating the private sector about the many benefits health insurance has for their workers. The CCHI certifies 26 insurance firms, five third-party administration companies, and over 2400 healthcare providers.
There is a big future of growth for private medical care in Saudi Arabia, with supporting factors such as low penetration, strong governmental support, and rising awareness of insurance. Because of these factors, those who opt for insurance plans in Saudi Arabia are likely to increase, giving the industry a definitive edge for development in the upcoming years.
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