Saudi Arabia Health & Medical Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.12 Billion |
| Market Size (2029) | USD 9.59 Billion |
| CAGR (2024 - 2029) | 6.13 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Health & Medical Insurance Market Analysis
The Saudi Arabia Health & Medical Insurance Market size in terms of premium value is expected to grow from USD 7.12 billion in 2024 to USD 9.59 billion by 2029, at a CAGR of 6.13% during the forecast period (2024-2029).
Saudi Arabia's healthcare insurance market is growing significantly because of mandatory health insurance schemes, the development of healthcare infrastructure, the increasing prevalence of non-communicable diseases, and government support.
Saudi Arabia's private and governmental healthcare system is well-developed. The reason for high-quality healthcare services is due to the growing population, shifting demographics, and increasing burden of non-communicable diseases.
Health insurance in Saudi Arabia is designed to reduce the financial strain on people when high payments come during unplanned illnesses or injuries. All citizens and foreigners are also required to have access to healthcare by the Saudi government. According to government rules, all private sector businesses must offer health insurance to their employees and dependents, including their spouses, male children below 25, and unmarried daughters.
Saudi Arabia Health & Medical Insurance Market Trends
Rising Cost of Medical Services
In a serious illness or accident, health insurance offers financial assistance. The rising expenses of hospital stays and surgical procedures brought on a new financial plague. The cost of medical services, among other things, includes the price of surgery, doctor visits, hospital stays, emergency room visits, and diagnostic tests. Thus, this rise in medical service prices fuels the market's expansion.
Advantages of Health Insurance Policies and Mandatory Provision of Healthcare Insurance
The insurer reimburses the policyholder of a health insurance plan for their medical costs, including hospitalization, surgeries, and injuries-related treatments. A health insurance policy is a contract where the insurance company guarantees reimbursement for treatment costs in the event of future medical concerns. The policyholder agrees to pay the premium per the insurance plan. Thus, the benefits of health insurance policies improve the health insurance market in Saudi Arabia's growth prospects.
Furthermore, public and private sector employees are required to purchase healthcare insurance. While working for a corporation, a person can take advantage of important medical advantages provided by health insurance. Health insurance coverage is very helpful in covering treatment costs in an emergency or medical problem. The health insurance the firm provides to its employees is a supplementary benefit. The employee and their family are covered by the health insurance supplied under the same policy plan. In some circumstances, the employer may contribute to the cost of the health insurance policy's premium or insurance coverage.
Saudi Arabia Health & Medical Insurance Industry Overview
The Saudi Arabia Health and Medical Insurance Market are semi consolidated. The increasing number of new players in the market is expected to increase the competition levels for established players. Two health insurance companies account for 75% of the local market, while the three largest firms dominate 83%. Additionally, there are 28 licensed companies in the Kingdom. Private health insurance covers about 30% of the working population and is mandatory for some employees in the private sector and other sectors.
The rapid adoption of advanced technology for improved healthcare and the new policies introduction are significant factors influencing the competitive nature. Furthermore, to gain market share, players are employing various strategies such as expansion, merger and acquisition, partnership, and collaboration.Key players operating in the market are Bupa Arabia, Tawuniya, Al Rajhi Takaful, Walaa, Medgulf, AXA Cooperative, Malath Insurance, Wataniya Insurance, Al Etihad Cooperative, SAICO, Amana Insurance, and others.
Saudi Arabia Health & Medical Insurance Market Leaders
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Bupa Arabia
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Tawuniya
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Al Rajhi Takaful
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Walaa
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Medgulf
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Health & Medical Insurance Market News
- February 2023: Cigna Worldwide Insurance Company announced that it has received an official branch license from the Saudi Central Bank (SAMA) to operate as a health insurer in the Kingdom of Saudi Arabia.
- October 2022: Walaa Cooperative Insurance Company announced the merger of SABB Takaful Company into Walaa Cooperative Insurance Company.
- October 2022: Walaa Insurance, the leading insurance company in Saudi Arabia, entered a strategic technology partnership with Software AG to transform its technology landscape. Software AG's hybrid digital integration platform will allow Walaa to launch new products, services, and channels in the Saudi market with an enhanced customer focus. With its leadership position in the Saudi insurance market, the technology partnership will allow Walaa's existing and new customers to experience innovative products & digital services from Walaa across multiple channels.
Saudi Arabia Health & Medical Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Technological Advancements Driving Market Growth
- 4.2.2 Rising Helathcare Costs and Medical Inflation Driving Market Growth
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4.3 Market Restraints
- 4.3.1 Rising Healthcare Costs Impeding Market Growth
- 4.3.2 Regulatory Compliance Challenges Market Growth
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitutes
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Insights on Technology Innovations in the Market
- 4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type of Insurance Provider
- 5.1.1 Public Sector Insurers
- 5.1.2 Private Sector Insurers
- 5.1.3 Standalone Health Insurance Companies
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5.2 By Type of Customer
- 5.2.1 Corporate
- 5.2.2 Non-Corporate
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5.3 By Type of Coverage
- 5.3.1 Individual Insurance Coverage
- 5.3.2 Family or Floater (Group)Insurance Coverage
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5.4 By Product Type
- 5.4.1 Disease- Specific Insurance
- 5.4.2 General Insurance
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5.5 By Demographics
- 5.5.1 Minors
- 5.5.2 Adults
- 5.5.3 Senior Citizens
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5.6 By Distribution Channel
- 5.6.1 Direct to Customers
- 5.6.2 Brokers
- 5.6.3 Individual Agents
- 5.6.4 Corporate Agents
- 5.6.5 Online
- 5.6.6 Bancassurance
- 5.6.7 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Bupa Arabia
- 6.2.2 Tawuniya
- 6.2.3 Al Rajhi Takaful
- 6.2.4 Walaa
- 6.2.5 MEDGULF
- 6.2.6 AXA Cooperative
- 6.2.7 Malath Insurance
- 6.2.8 Wataniya Insurance
- 6.2.9 Al Etihad Cooperative
- 6.2.10 SAICO
- 6.2.11 Amana Insurance*
- *List Not Exhaustive
- 6.3 MARKET OPPORTUNTIES AND FUTURE TRENDS
- 6.4 DISCLAIMER AND ABOUT US
Saudi Arabia Health & Medical Insurance Industry Segmentation
Health insurance implies a form of coverage where policyholders pay regular premiums, and in return, the insurance provider covers their medical and surgical expenses during emergencies.
The health & medical insurance industry in Saudi Arabia is segmented by type of insurance provider, type of customer, type of coverage, product type, demographics, and distribution channel. The type of insurance provider is sub-segmented into public sector insurers, private sector insurers, and standalone health insurance companies. The type of customer is sub-segmented into corporate and non-corporate. The type of coverage is sub-segmented into individual insurance coverage, family insurance coverage, or floater insurance coverage. Product type is sub-segmented into disease-specific insurance and general insurance. Demographics is sub-segmented into minors, adults, and senior citizens, and distribution channel is sub-segmented into direct to customers, brokers, individual agents, corporate agents, online, bancassurance, and other distribution channels. The report offers market size and forecasts for the health & medical insurance industry in Saudi Arabia in value (USD) for all the above segments.
| By Type of Insurance Provider | Public Sector Insurers |
| Private Sector Insurers | |
| Standalone Health Insurance Companies | |
| By Type of Customer | Corporate |
| Non-Corporate | |
| By Type of Coverage | Individual Insurance Coverage |
| Family or Floater (Group)Insurance Coverage | |
| By Product Type | Disease- Specific Insurance |
| General Insurance | |
| By Demographics | Minors |
| Adults | |
| Senior Citizens | |
| By Distribution Channel | Direct to Customers |
| Brokers | |
| Individual Agents | |
| Corporate Agents | |
| Online | |
| Bancassurance | |
| Other Distribution Channels |
Saudi Arabia Health & Medical Insurance Market Research Faqs
How big is the Saudi Arabia Health & Medical Insurance Market?
The Saudi Arabia Health & Medical Insurance Market size is expected to reach USD 7.12 billion in 2024 and grow at a CAGR of 6.13% to reach USD 9.59 billion by 2029.
What is the current Saudi Arabia Health & Medical Insurance Market size?
In 2024, the Saudi Arabia Health & Medical Insurance Market size is expected to reach USD 7.12 billion.
Who are the key players in Saudi Arabia Health & Medical Insurance Market?
Bupa Arabia, Tawuniya, Al Rajhi Takaful, Walaa and Medgulf are the major companies operating in the Saudi Arabia Health & Medical Insurance Market.
What years does this Saudi Arabia Health & Medical Insurance Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Health & Medical Insurance Market size was estimated at USD 6.68 billion. The report covers the Saudi Arabia Health & Medical Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Health & Medical Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Health & Medical Insurance Industry Report
Statistics for the 2024 Saudi Arabia Health & Medical Insurance market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Saudi Arabia Health & Medical Insurance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
