More citizens of Saudi Arabia are signing up for health insurance. The impressive surge is reportedly due to the digital transformation sweeping the country.
A bulletin by the Council of Health Insurance showed 11.46 million got health insurance. This was only during the second quarter of 2023. That’s 5% more when compared to figures from the same period in 2022.
Spokesperson Nasser Al-Juhani said they expect a rise in the number of beneficiaries. He said it could cover 90% of individuals this year. The increase in signups is not a surprise. Rates have been going up steadily over the past few years. It hit 73% back in 2021 and 85% in 2022.
Al-Juhani had a more in-depth explanation in a recent interview. He said strong tourism is the main force behind the robust growth. A steady inflow of Umrah performers and pilgrims also helped.
He also emphasized the critical role digital transformation played. Al-Juhani said it helped power the shift in the Kingdom’s medical system. A vital example is the National Platform for Healthcare Information Exchange Services.
The platform rolled out in April 2022. The idea was to develop a way to merge patient care records for healthcare providers. It also aimed to enhance insurance services.
According to Al-Juhani, 150 million transactions were already made on the platform.
Saudi Arabia’s insurance sector enjoyed a strong showing in 2022. It saw a 26.9% increase. That’s a significant improvement when stacked against the 8.4% growth in 2021. This turnaround mirrors the country’s efforts to improve the industry.
These efforts appear to be paying off. The Saudi Central Bank reported the entire written premium for 2022 was SR 53 billion. The bank's 16th annual report noted that it was several million better from 2021. That year saw premiums reach SR42 billion.
There was more from the Central Bank’s report on the insurance market. It also showed that health insurance schemes were spearheading the sector’s upward momentum. Motor insurance and protection and savings insurance also showed strong numbers.
Saudi health insurance remained the most prominent element of the industry. It saw a growth rate of 26.8%. In contrast, protection and saving insurance went from 4.1% in 2021 to 3.5% in 2022. It remains one of the business’ minor lines.
The insurance industry’s positive standing is a testament to the Central Bank’s efforts. It pushed to improve the industry’s economic impact and efficiency. It accomplished this by thrusting more major regulatory changes the entire year.