Market Size of Saudi Arabia Health & Medical Insurance Industry
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 |
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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 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 Size Summary
The health and medical insurance industry in Saudi Arabia is experiencing substantial growth, driven by mandatory health insurance schemes, advancements in healthcare infrastructure, and increasing government support. The market is characterized by a well-developed private and governmental healthcare system, which is essential due to the growing population and the rising prevalence of non-communicable diseases. Health insurance in the country is designed to alleviate the financial burden of unexpected medical expenses, with government regulations mandating that all private sector businesses provide health insurance to their employees and their dependents. This requirement, coupled with the rising costs of medical services, is fueling the expansion of the health insurance market.
The market is semi-consolidated, with a few key players dominating the landscape, while new entrants are increasing competition. The presence of 28 licensed companies and the mandatory nature of private health insurance for certain sectors contribute to the market's competitive dynamics. Technological advancements and new policy introductions are significant factors influencing the market's competitive nature. Key players, including Bupa Arabia, Tawuniya, and Al Rajhi Takaful, are employing strategies such as mergers, acquisitions, and partnerships to enhance their market share. Recent developments, such as Cigna's entry into the market and Walaa's strategic technology partnership, highlight the ongoing evolution and innovation within the industry.
Saudi Arabia Health & Medical Insurance Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Technological Advancements Driving Market Growth
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1.2.2 Rising Helathcare Costs and Medical Inflation Driving Market Growth
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1.3 Market Restraints
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1.3.1 Rising Healthcare Costs Impeding Market Growth
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1.3.2 Regulatory Compliance Challenges Market Growth
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitutes
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insights on Technology Innovations in the Market
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type of Insurance Provider
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2.1.1 Public Sector Insurers
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2.1.2 Private Sector Insurers
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2.1.3 Standalone Health Insurance Companies
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2.2 By Type of Customer
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2.2.1 Corporate
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2.2.2 Non-Corporate
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2.3 By Type of Coverage
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2.3.1 Individual Insurance Coverage
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2.3.2 Family or Floater (Group)Insurance Coverage
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2.4 By Product Type
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2.4.1 Disease- Specific Insurance
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2.4.2 General Insurance
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2.5 By Demographics
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2.5.1 Minors
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2.5.2 Adults
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2.5.3 Senior Citizens
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2.6 By Distribution Channel
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2.6.1 Direct to Customers
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2.6.2 Brokers
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2.6.3 Individual Agents
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2.6.4 Corporate Agents
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2.6.5 Online
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2.6.6 Bancassurance
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2.6.7 Other Distribution Channels
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Saudi Arabia Health & Medical Insurance Market Size 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.