RIYADH, 23 September 2007 — The Kingdom’s insurance market is poised to reach SR30 billion in 10 years, industry experts said yesterday.
“The insurance market will witness a rapid growth due to the government’s new rule which would enable all expatriates to be covered under the health insurance scheme,” said Mohammed Abbas Abdul Jaleel, assistant general manager of Allied Cooperative Insurance Group.
He pointed out that the existing SR 7 billion market would reach SR 15 billion in 2009 and this will be doubled when the government introduced compulsory health insurance on all its 16 million population.
According to a recent report from the Saudi Arabian Monetary Agency (SAMA), the insurance market witnessed a 64 percent growth, from only SR5.2 billion in 2005, with the introduction of mandatory health insurance on expatriates.
SAMA has given a deadline for all companies to cover their workers with health insurance by March 2008. “So far, SAMA has given licenses to 18 insurance companies and 24 more new companies are expected to enter this competitive market,” Jaleel said.
Dr.Abdullah Al-Shareef, secretary-general of Cooperative Health Insurance Council, said that seven million expatriates would come under the scheme through 18 insurance companies.” So far, a sizable number of expatriates who are working in companies which have a large workforce have been covered under this scheme,” Al-Shareef said, noting that the program is being implemented in phases to cover all sectors. The first phase covered those establishments that have more than 500 employees.” They were given a deadline to cover their staff with medical insurance in July this year.”
Shareef said resident certificate (Iqama) will be renewed only on production of a health insurance cover on foreign workers. He noted that the mandatory scheme would cover small and big companies and even foreign domestic aides who work under individual sponsors. He said the minister of health has appointed a special committee to look into enforcement and violations of this regulation. “It would also take remedial steps to solve teething problems and bring violators to book.”
According to a spokesman from the Ministry of Health, a total of 400 health service providers have been appointed to attend to the health needs of those insure.
Prince Mohammed Ibn Bandar Ibn Abdul Aziz, chairman of Al-Ahliah Cooperative Insurance Company, said the concept of insurance in the Kingdom is new to its people. However, he added that it tends to grow faster due to growing demand.
In addition to health insurance, licensed insurance companies in the Kingdom are planning to introduce new products and services in the field of insurance in automobiles, movable and immovable properties, life, sea, engineering and medical errors.
