The Saudi Health Insurance Market Could Exceed 18 billion Rials this Year
Monday, 05 18 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. Tal Hisham Nazer, the CEO of Bupa Arabia for Cooperative Insurance, expects premiums in the health insurance market to exceed 18 billion Rials this year. He also anticipates that the Council of Cooperative Health Insurance’s efforts will result in creating mechanisms that ensure the inclusion of groups that require compulsory health insurance and providing health insurance for nearly 2.5 million citizens whose companies evade providing compulsory coverage for due to the absence of a governmental mechanism that ensures their access to health insurance. This creates a burden on the Ministry of Health as citizens whose treatments are supposed to be covered by the private sector are forced to go to public hospitals to receive treatment instead. Additionally, Bupa Arabia for Cooperative Insurance has achieved profits of 36.8 million Rials in the first quarter of 2015. This is a remarkable achievement as it is the first time the company realizes a profit in its first quarter. The company’s market share also rose to 41.9% during Q1 of 2015 and has topped the health insurance sector in Saudi Arabia since the end of 2014.
These statements were made during the quarterly meeting held by Bupa Arabia with more than 40 local, regional and global financial analysts, arranged by Deutsche Bank, to discuss its quarterly results. Nazer also pointed out that total premiums in the Saudi health insurance market amounted to 4,965 million Rials in Q1 of 2015, a 20% growth from the corresponding period in 2014. This increase was supported by improved pricing in the sector, commitment to actuarial standards and increased benefits for insureds as mentioned in the health insurance policy the Council of Cooperative Health Insurance started implementing in July of last year.