Saudi Arabia Health and Medical Insurance Market
Saudi Arabia Health and Medical Insurance Market Size Expanding to Touch USD 11.1 Billion by 2029
Published | 17 January 2023
Saudi Arabia health and medical insurance market is flourishing because of an increasing focus on managing healthcare cost, rapid population growth, and growing prevalence of various lifestyle disorders.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia health and medical insurance market size at USD 7 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Saudi Arabia health and medical insurance market size to grow at a significant CAGR of 6.9% reaching a value of USD 11.1 billion by 2029. Major growth factors of Saudi Arabia health and medical insurance market include the increasing economic diversity of the country and rapid population growth. Expats from all over the world are relocating to the country as a result of the country's growing industrialization and increased work possibilities, stimulating the expansion of the healthcare and health insurance sectors. In Saudi Arabia, health insurance is geared toward reducing the financial burden that comes with having to pay expensive medical expenditures due to an unforeseen illness or injury. Also, the Saudi government requires all nationals and non-nationals to have health insurance. The increasing frequency of busy and sedentary lifestyles is leading to an increase in obesity and diabetes cases in the region. This is creating a demand for health insurance to offset rising medical costs. The region's burgeoning patient pool and population are projected to provide additional impetus to the business. The introduction of low-cost insurance policies that can be further customized to meet the specific needs of clients is helping to propel the sector forward. The introduction of unique programs by industry leaders targeted at protecting consumers in Saudi Arabia from expensive medical costs is likely to boost market expansion in Saudi Arabia over the forecast period.
Saudi Arabia Health and Medical Insurance Market – Overview
Health insurance is a type of insurance coverage that charges the policyholder a monthly fee and compensates for medical and surgical expenditures incurred by the individual in the event of a medical emergency. An effective health insurance plan comprises services, such as chronic sickness and condition diagnosis and treatment, mental care, emergency evacuation and transportation, in-patient and out-patient treatment, maternity, and dental care. Bupa Saudi Arabia, Tawuniya, MedGulf Arabia, and other major health insurance carriers operate in Saudi Arabia. The government started implementing the required unified health insurance policy in July 2016, and the system has been fully operational since 2017. All private sector organizations are required to provide health insurance to their employees as well as their dependents, which include spouses, unmarried daughters, and male children under the age of 25. Various factors, such as rising population, rising healthcare costs, increasing prevalence of various lifestyle diseases, and improved healthcare infrastructure, are fueling the expansion of Saudi Arabia's health insurance industry.
Impact of COVID-19 on Saudi Arabia health and medical insurance market
COVID-19 had a detrimental impact on several manufacturing and service industries during 2020–21, resulting in the closure of workplaces, interruption of supply chains, and transit limitations. However, the imbalance between demand and supply, as well as its impact on pricing, is considered short-term and is likely to rebound once the pandemic ends. Because of the global spread of COVID-19, the need for health insurance has skyrocketed. The fear of pandemic and the rising cost of medical services aided the growth of the health insurance industry during the pandemic. Health insurance firms launched packages and ways to pay the medical costs of treating COVID-19-infected insurers. Despite the fact that other companies suffered greatly during the COVID-19 outbreak, the health insurance market also grew rapidly.
Saudi Arabia health and medical insurance market – By Type
By type, Saudi Arabia health and medical insurance market is bifurcated into Individual and Group segments. The individual segment holds a higher market share during period in analysis. Individual plans provide greater benefits, and the premium generated by an individual insurance policy is more than corporates, which increase market size. Corporate insurance is offered by the firm to its employees. It has a low premium cost since it gives fewer benefits than individual insurance. If an individual leaves a job, this form of insurance becomes null and void. These factors may hinder the expansion of the group insurance industry.
Major players operating in Saudi Arabia health and medical insurance market include Bupa Arabia, Tawuniya, AIRajhi Takaful, Medgulf, AXA Cooperative, Walaa, Allianz Saudi Franzi, Al Etihad, Malath Insurance, and SAICO. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Saudi Arabia Health and Medical Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Health and Medical Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing qualitative and quantitative data to boost the performance of your business solutions. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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