JEDDAH, 15 December 2004 — Saudi Arabia’s determination to implement the cooperative health insurance plan for Saudis and expatriate workers early next year was in evidence at a conference presided by Health Minister Dr. Hamad Al-Manie at the Jeddah Chamber of Commerce & Industry (JCCI) yesterday.
The minister and other speakers focused on the need for mobilizing investment for the health insurance sector. The initial capital required for investment is around SR100 million. “Mobilizing investment should not be difficult at a time when investors started repatriating their investments from the West, especially the United States,” the minister said opening the conference. Al-Manie also chairs the Cooperative Health Insurance Council that will supervise health insurance services in the country.
Al-Manie said the Kingdom had 399 hospitals with a total of 47,231 beds, of which 200 hospitals with 28,289 beds belong to the Ministry of Health. Additionally, the Kingdom has 3,076 polyclinics and other health care facilities, including 1,848 primary health care centers. “Like anywhere in the world, the health care sector in the Kingdom is facing economic and social changes and it’s essential to make preparations to face the changes in a scientific manner,” the minister added.
The minister emphasized that the cooperative health insurance plan was aimed to provide health care to all Saudi and expat residents. “The scheme, which is offered to expats at present, will be implemented to Saudis at a later stage. This is meant to reduce the pressure on government hospitals and develop health care facilities in the private sector,” the minister said.
JCCI Chairman Adel Fakeeh said the private insurance sector had been growing rapidly. “In fact, this is one of the fastest growing sectors in the Kingdom’s economy,” he said. He referred to the repatriation of Saudi investments from abroad as well as the new insurance law that is aimed to regulate the market. “New regulation will surely attract more investments, as Saudis have started withdrawing their investments from abroad and investing back home,” Fakeeh said.
JCCI Secretary General Mohammed A. Al-Sharif said the health insurance plan proposal had been well received in the private sector and was being considered for speedier implementation.
The contribution of insurance to the gross national product (GNP) is 0.7 percent at present, JCCI’s Insurance Council Chairman Dr. Abdul Ilah Saati said, adding that it is expected to rise to 3.7 percent in the next few years.
The Kingdom’s health insurance market, estimated at SR8 billion, is expected to pass SR18 billion within the next five years.
The cooperative health insurance plan has not been implemented properly due to lack of rules and regulations and lack of licensed insurance companies, some speakers said. The National Company for Cooperative Insurance (NCCI) is the only authorized insurance firm in the country.
Private sector insurance company executives, including those from BUPA Middle East, said they were confident that the new health insurance plan would be implemented sooner than expected.