Saudi health insurance set to cover 90% of population this year, says industry regulator

The number of Saudis signing up to health insurance schemes hit 11.46 million in the second quarter of 2023, up 5 percent on the same period last year, according to the latest figures.

The Council of Health Insurance’s quarterly bulletin showed the volume of beneficiaries is expected to reach 90 percent of people this year, up from 73 percent in 2021 and 85 percent in 2022, reported the industry regulator’s spokesperson Nasser Al-Juhani.

Higher growth is set to be driven by robust tourism and an inflow of pilgrims and Umrah performers, Al-Juhani said in an interview with Al-Ekhbariya TV channel on Monday.

The spokesman highlighted that digital transformation is central to the changeover in Saudi Arabia’s medical aid, exemplified by implementation of the National Platform for Healthcare Information Exchange Services.

Launched in April 2022, the platform is designed to unify patient care records for healthcare providers and optimize insurance services.

Al-Juhani noted that the number of transactions on the platform has reached around 150 million since its initiation.

The insurance sector witnessed a 26.9 percent growth in 2022 compared to a rise of 8.4 percent in 2021, reflecting the Kingdom’s efforts toward developing the industry.

The total written premium in 2022 stood at SR53 billion ($14.1 billion), up from SR42 billion the year prior, according to the 16th annual report on the insurance market released by the Saudi Central Bank, also known as SAMA, in May.

At the forefront of the sector’s development were health insurance, protection and savings insurance and motor insurance, reported the bank.

Health insurance, which is still the largest line of business, witnessed a growth rate of 26.8 percent. On the other hand, protection and saving insurance, the smallest line of business, fell from 4.1 percent in 2021 to 3.5 percent last year.

The industry’s positive trend showcases SAMA’s efforts to improve the sector’s efficiency and economic impact through major regulatory developments throughout the year.