Takaful News - Saudi Arabia: Health premiums up 20%
Source: Middle East Insurance Review | Mar 2016
Health premiums in the Saudi market grew by 20% last year to SAR18.96 billion (US$5 billion), accounting for the lion’s share of total premiums, according to an analysis by the Argaam news website of published financial results of insurance companies.
The health insurance sector made up 52% of total premiums, which grew to SAR36.37 billion last year. This is the same proportion as in 2014.
The sector is set to grow further with the government now working to make medical insurance mandatory for all Saudis. This follows moves to oblige all private businesses to provide medical insurance for their workers and families, and for all foreign visitors, except haj and umrah pilgrims, diplomatic and special passport holders, and state guests, to buy health covers.
The Health Ministry and the Council of Cooperative Health Insurance (CCHI) are currently looking into extending healthcare insurance to cover obesity and related illnesses.
Overall, GWP in the Saudi insurance market increased by 19% last year to SAR36.37 billion.
Auto insurance premiums grew by 32% to SAR10.6 billion last year, accounting for 29% of total market premiums, following increases in premium rates due to higher claims faced by insurers. In 2014, the motor business represented 26% of overall premiums.
SAR1 = US$0.26