Saudi Arabia – 3 companies represent 80% of health insurance premiums
Saturday, 06 11 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. Salah Al Jaber Chairman of the Insurance Committee in the Chamber of Commerce and Industry in the Eastern Province said that only 3 companies represent 80% of total premiums paid in the health insurance sector in the Kingdom.
Additionally, Al Jaber said: This situation has negative implications on the health sector and insurance beneficiaries in the short term, medium term and long term. In the short term, competition will cause insurance prices to decrease with a negative effect on the quality of service provided to the insured. The price war could in the medium term drive some companies out of business. As a result, competition will take place among a limited number of companies, which can negotiate with health service providers. Thus, in the long term, the profits of health service providers will diminish and their possibilities to expand and develop will be limited. Some practices, which are against the insured, or the insurance company could occur such as unnecessary tests or charging the insured for cash in case the insurer delays the payment.
Source: Al Jazirah