Health insurance premiums are projected to nearly double from SAR42bn ($11.2bn) in 2024 to SAR83bn in 2030, according to a white paper released by Bupa Arabia.
Over the same period, Saudi Arabia’s insurance sector is also forecast to see unprecedented growth, with gross written premiums (GWP) rising from SAR75.9bn in 2024 to more than SAR129bn by 2030, says the paper that is titled “KSA Insurance Sector Review 2024”.
The author of the report, Mr Nadeem Shahzad, director of Customer & Market Insights at Bupa Arabia, said, “The surge is expected to be driven by several economic and regulatory factors, foremost among them the expansion of health insurance, which currently represents 55% of the market."
The paper also highlights that this growth reflects fundamental shifts in the sector under Vision 2030 programmes, regulatory reforms, healthcare infrastructure expansion, accelerating digital transformation, and the increasing number of insured individuals, along with stricter oversight measures such as enforcement initiatives.
Insurance acceleration
According to the white paper, the local market has more than tripled in size over the past decade, growing from SAR21.3bn in 2012 to SAR75.9bn in 2024.
The most significant transformation, however, came after the COVID-19 pandemic, which pushed insurers to adopt digital platforms and new regulatory solutions such as the InsurTech Sandbox, Nafis platform, and the “Virtual Hospital.” These measures enabled the sector to overcome the crisis, achieving a compound annual growth rate (CAGR) of 22%.
Growth drivers
The report identifies several key drivers shaping the future of the industry, most notably Vision 2030, which is channeling over SAR1tn in investments into healthcare, infrastructure, and digital transformation. This creates vast opportunities for the insurance sector to diversify its offerings.
Connected medicine (telehealth) is emerging as a cornerstone of this transformation, expanding access to healthcare, reducing costs, and enhancing patient experience through solutions such as remote care, automated claims processing, and advanced digital portals.
On the regulatory side, stricter oversight has expanded mandatory coverage to new segments, including domestic workers and gig economy participants, potentially adding SAR9.4bn in GWP.
Tourism revenues
Tourism is another growth factor, expected to generate an additional SAR4.5bn in insurance premiums as the Kingdom targets 150m annual visitors by 2030, up from more than 100m in 2023.
At the same time, Riyadh’s urban boom—driven by mega-projects such as Mall of Saudi, The New Murabba, and King Salman Energy City—is boosting demand for insurance products and services, positioning the capital as the new growth hub for the sector.
Healthcare challenges
Despite the positive outlook, the report warns of challenges that could hinder sustainable growth in the health insurance market. Chief among them is medical inflation, which is outpacing global averages due to expanded health benefits and reliance on advanced technologies—raising service costs and straining insurers’ ability to manage expenses.
The paper also points out regulatory compliance gaps, with portions of the private sector workforce and their families still uninsured. Meanwhile, smaller companies face difficulties keeping up with digital transformation and compliance requirements, which may consolidate market power in the hands of larger players.
Market resilience
Nevertheless, the market has demonstrated strong resilience despite the pressures from VAT implementation and dependent fees during 2020–2021. It recovered to reach a record 12.1m insured individuals in 2023, followed by a further increase of 1.2m, bringing the total to 13.2m in 2024. Expanding coverage to include domestic workers, tourists, and gig economy employees represents a significant opportunity to drive market growth and enhance inclusivity in the years ahead.
Sustainable growth
Commenting on the report, Mr Shahzad said, “The Saudi health insurance market is experiencing substantial expansion driven by Vision 2030, which has laid a solid foundation for growth. The combination of strict regulations and effective supervision ensures that this momentum translates into sustainable growth, while digital transformation opens vast opportunities to innovate and enhance customer services.”
He added, “Medical data has become the new currency of the healthcare era. It is the foundation for developing more accurate and effective services. Value-based care remains the best way to address medical inflation challenges and improve service quality, ensuring the sector’s sustainability and maximizing its contribution to the national economy.”
Saudi health insurance sector by the numbers
- SAR129n – projected size of the total insurance market by 2030
- SAR83bn – projected health insurance market size by 2030
- 13.2m – insured lives in 2024 after recovery from COVID-19
- 3.8m – domestic workers added to the insurance system since 2022
- 55% – Total insurance market captured by health insurance at present
(Note: Bupa Arabia says that the views and interpretations expressed in the white paper are solely those of the author and do not necessarily reflect its views or official position.)