Fluctuations in Saudi insurance market

The exodus of expatriates from Saudi Arabia could have a negative effect on health and motor insurance.
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According to a report from investment house Albilad Capital, while the exodus of expatriates from Saudi Arabia could have a negative effect on health insurance and motor insurance, this may be mitigated by moves from the Health Insurance Council to expand access to insurance coverage.

Many expat families have opted to leave Saudi Arabia due to the emirate’s struggling economy, meaning that demand for health insurance and motor insurance could fall as a consequence. But the Saudi Government’s 2018 Cooperative Health Insurance Policy, as well as its decision to allow women to start driving, could pick up the slack where both lines are concerned, according to Albilad Capital’s report.

The government policy offers various compulsory benefits, which will be introduced from 1 July this year. Treatment for dental, heart and some psychological conditions are included. Additionally, some Ministry of Health-run hospitals will now be included within Saudi Arabia’s health insurance network, which is also expected to have positive effects on the market.

Health insurance is Saudi Arabia’s largest insurance segment, with a market share of over 50 per cent.

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