Market Insights Financial Insurances Non-life insurances

Health insurance - GCC

The Health insurance market market in GCC is projected to reach a market size (gross written premium) of US$9.22bn in 2024.
The average spending per capita in the Health insurance market market is estimated to be US$152.70 in 2024.
Furthermore, the gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2028) of 6.25%, resulting in a market volume of US$11.75bn by 2028.
It is worth noting that, in global comparison, the United States will generate the highest gross written premium of US$1,607.0bn in 2024.
The GCC region is witnessing a surge in demand for health insurance, driven by the rising awareness of the importance of healthcare and the increasing costs of medical treatments.

Market

Region

Region comparison

Currency

Analyst Opinion

The Health insurance market in GCC has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the GCC region are increasingly seeking comprehensive health insurance coverage that includes a wide range of benefits such as outpatient care, maternity services, and coverage for pre-existing conditions. Additionally, there is a growing demand for digital solutions that provide easy access to healthcare services and facilitate seamless claims processing.

Trends in the market: In Saudi Arabia, the health insurance market is witnessing a trend towards mandatory health insurance coverage for expatriates and their dependents. This has led to an increase in the number of insurance policies being issued in the country. In the UAE, there is a growing interest in health insurance products that offer coverage for alternative medicine and wellness services, reflecting a shift towards holistic healthcare approaches.

Local special circumstances: In Kuwait, the government plays a significant role in the health insurance market by providing health insurance coverage to its citizens through the Ministry of Health. This has created a unique dynamic where private health insurance companies primarily cater to expatriates and residents who seek additional coverage beyond what is provided by the government.

Underlying macroeconomic factors: The economic diversification efforts in the GCC countries have resulted in a growing population of expatriates who require health insurance coverage as a mandatory requirement for residency. Additionally, the rising healthcare costs and the increasing prevalence of lifestyle-related diseases have underscored the importance of having adequate health insurance coverage in place. These factors have contributed to the overall growth and development of the health insurance market in the GCC region.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.