Saudi Arabia’s health insurance market is projected to nearly double by 2030, with premiums expected to rise from SAR 42 billion in 2024 to SAR 83 billion, according to the Saudi Insurance Sector Review 2024 from Bupa Arabia for Cooperative Insurance. Overall gross written premiums (GWP) across the insurance sector are forecast to grow from SAR 75.9 billion in 2024 to over SAR 129 billion by the end of the decade.

The surge is being driven by Vision 2030 initiatives, regulatory reforms, digital transformation, and expanding healthcare infrastructure. Health insurance currently accounts for 55% of the market, and mandatory coverage is being extended to new groups, including domestic workers and gig economy employees, potentially adding SAR 9.4 billion in GWP. Tourism is also expected to boost premiums by SAR 4.5 billion as Saudi Arabia targets 150 million visitors annually by 2030.

The sector has more than tripled over the past decade, growing from SAR 21.3 billion in 2012. Post-pandemic, insurers adopted digital platforms such as the InsurTech Sandbox, Nafis platform, and the “Virtual Hospital,” helping the sector maintain growth with a 22% compound annual growth rate (CAGR).

However, challenges remain. Medical inflation, driven by expanded health benefits and advanced technologies, is straining insurers’ cost management. Gaps in regulatory compliance leave some private-sector workers and their families uninsured, while smaller firms struggle to keep pace with digitalisation, potentially consolidating market power among larger players.

Despite these pressures, the market has shown resilience, reaching a record 13.2 million insured individuals in 2024. Expanding coverage to domestic workers, tourists, and gig economy employees presents a significant growth opportunity.

Commenting on the report, Nadeem Shahzad, Director of Customer & Market Insights at Bupa Arabia, 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… Value-based care remains the best way to address medical inflation challenges and improve service quality, ensuring the sector’s sustainability and maximising its contribution to the national economy.”

The report concludes that digitalisation, connected medicine, value-based care, and stronger public-private collaboration will drive the Saudi insurance market’s maturation in the coming years.