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Saudi Arabia Health And Medical Insurance Market

Saudi Arabia Health And Medical Insurance Market

Saudi Arabia Health and Medical Insurance Market - By Type (Individual, Group); By Service Provider (Public, Private), Trend Analysis, Competitive Landscape & Forecast, 2019–2029

  • Published Date: January 2023
  • Report ID: BWC23047
  • Available Format: PDF
  • Page: 107

Report Overview

Focus on managing healthcare, growing population, and economic diversity; and rising prevalence of various lifestyle diseases are projected to propel the expansion of Saudi Arabia health and medical insurance market during the forecast period between 2023 and 2029.

Saudi Arabia Health and Medical Insurance Market - Industry Trends & Forecast Report, 2029

Saudi Arabia health and medical insurance market size was estimated at USD 7,031.7 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia health and medical insurance market is projected to grow at a CAGR of 6.9% reaching a value of USD 11,120.1 million by 2029. Major growth drivers for Saudi Arabia health and medical insurance market include the increasing economic diversity of the country and rapid population growth. Expats 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 could boost the market expansion in Saudi Arabia during the forecast period.

Saudi Arabia Health and Medical Insurance Market

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, dental care, and so on. 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. Furthermore, factors such as rising population, rising healthcare costs, increasing prevalence of various lifestyle diseases, improved healthcare infrastructure, and so on are fueling the expansion of Saudi Arabia's health insurance industry.

Saudi Arabia Health and Medical Insurance Market

Growth Drivers

Increasing Cost of Medical Services

Health insurance provides financial assistance in the event of a serious illness or accident. The rising expense of medical services such as operations and hospital stays has generated a new financial crisis around the world. The cost of medical services includes, among other things, the cost of surgery, doctor fees, hospital stay costs, emergency department costs, and diagnostic testing costs. As a result, the rise in the cost of medical services drives market expansion.

Restraints

Expensive Insurance Premium

All medical treatment expenditures are covered by health insurance. It provides financial assistance to the policyholder by covering all medical expenses incurred while the policyholder is hospitalized for treatment. Pre- and post-hospitalization expenses are also covered by health insurance. To keep the health insurance coverage current, the policyholder must pay insurance premiums on a regular basis. The cost of insurance premiums is high in the majority of cases, depending on the insurance plan, stifling market expansion.

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 2020–2021, 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. Moreover, the fear of pandemic and the rising cost of medical services aided the growth of the health insurance industry during the pandemic. Furthermore, 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 grew tremendously.

Saudi Arabia Health and Medical Insurance Market

Segmental Coverage

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.

Saudi Arabia Health and Medical Insurance Market Share

Saudi Arabia Health and Medical Insurance Market – By Service Provider

Based on service provider, Saudi Arabia health and medical insurance market is split into Public and Private segments. The private segment holds a higher market share during the forecast period. This is attributable to the growing penetration of private providers in developing countries. Commercial providers are offering novel policies with all of the benefits, which is increasing public preference.

Saudi Arabia Health and Medical Insurance Market Size

Competitive Landscape

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.

Scope of the Report

Attributes

Details

Years Considered

Historical Data – 2019–2022

Base Year – 2022

Estimated Year – 2023

Forecast Period – 2023–2029

Facts Covered

Revenue in USD Million

Market Coverage

Saudi Arabia 

Product/ Service Segmentation

Type, Service Provider

Key Players

Bupa Arabia, Tawuniya, AIRajhi Takaful, Medgulf, AXA Cooperative, Walaa, Allianz Saudi Franzi, Al Etihad, Malath Insurance, SAICO

 

By Type

  • Individual

  • Group

By Service Provider

  • Public

  • Private

  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Executive Summary
  3. Saudi Arabia Health and Medical Insurance Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
        1. Increasing Cost of Healthcare
        2. Increasing Population and Economic Diversity in the Country
        3. Rising Prevalence of Various Lifestyle Diseases
      2. Restraints
      3. Opportunities
        1. Growing Demand for Quality Private Care
      4. Challenges
        1. Stringent Government Policies
    3. Technological Advancement/Recent Developments
    4. Regulatory Framework
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  4. Saudi Arabia Health and Medical Insurance Market Overview
    1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Type
        1. Individual
        2. Group
      2. By Service Provider
        1. Public
        2. Private
  5. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Saudi Arabia Health and Medical Insurance Company Market Share Analysis, 2022
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
  6. Impact of Covid-19 on Saudi Arabia Health and Medical Insurance Market
  7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Bupa Arabia
    2. Tawuniya
    3. AIRajhi Takaful
    4. Medgulf
    5. AXA Cooperative
    6. Walaa
    7. Allianz Saudi Franzi
    8. Al Etihad
    9. Malath Insurance
    10. SAICO
    11. Other Prominent Players
  8. Key Strategic Recommendations
  9. Research Methodology
    1. Qualitative Research
      1.   Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.   

 

 

List of Figures

 

Figure 1       Saudi Arabia Health and Medical Insurance Market Segmentation                  

Figure 2       Saudi Arabia Health and Medical Insurance Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2022         

Figure 4       Saudi Arabia Health and Medical Insurance Market Size, By Value (USD Million), 2019–2029          

Figure 5       Saudi Arabia Health and Medical Insurance Market Share, By Type, By Value, 2019–2029          

Figure 6       Saudi Arabia Health and Medical Insurance Market Share, By Service Provider, By Value, 2019–2029          

         

List of Table

 

Table 1        Saudi Arabia Health and Medical Insurance Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Health and Medical Insurance Market Share, By Type, By Value, 2019–2029

Table 3        Saudi Arabia Health and Medical Insurance Market Share, By Service Provider, By Value, 2019–2029

Table 4        Bupa Arabia Company Overview

Table 5        Bupa Arabia Financial Overview

Table 6        Tawuniya Company Overview

Table 7        Tawuniya Financial Overview

Table 8        AIRajhi Takaful Company Overview

Table 9        AIRajhi Takaful Financial Overview

Table 10      Medgulf Company Overview

Table 11      Medgulf Financial Overview

Table 12      AXA Cooperative Company Overview

Table 13      AXA Cooperative Financial Overview

Table 14      Walaa Company Overview

Table 15      Walaa Financial Overview

Table 16      Allianz Saudi Franzi Company Overview

Table 17      Allianz Saudi Franzi Financial Overview

Table 18      Al Etihad Company Overview

Table 19      Al Etihad Financial Overview

Table 20      Malath Insurance Company Overview

Table 21      Malath Insurance Financial Overview

Table 22      SAICO Company Overview

Table 23      SAICO Financial Overview

 

Market Segmentation

By Type

  • Individual

  • Group

By Service Provider

  • Public

  • Private

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