Health insurance - Saudi Arabia | Statista Market Forecast

The Health insurance market market in Saudi Arabia is expected to reach a projected market size (gross written premium) of US$4.16bn in 2024.
By that year, the average spending per capita in the Health insurance market market is estimated to amount to US$110.90.
The gross written premium is projected to exhibit an annual growth rate (CAGR 2024-2029) of 3.82%, resulting in a market volume of US$5.01bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of US$1.7tn in 2024.
Saudi Arabia is experiencing a rising demand for health insurance due to the increasing focus on healthcare accessibility and quality.

Definition:

Health insurance is a financial arrangement in which individuals or groups pay regular premiums to a provider, typically an insurance company. In exchange for these premiums, the insurer offers coverage and financial assistance for various healthcare-related costs, including but not limited to medical consultations, hospitalization, prescription medications, and other medical services. According to our current definition, the health insurance market includes voluntary health insurances.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Voluntary health insurance contributions

Compulsory health insurance contributions
Government schemes
Out-of-pocket payments
Reinsurance

Over the past decade, the Health insurance market in Saudi Arabia has experienced significant growth and transformation.

Customer preferences: Customers in Saudi Arabia are increasingly seeking comprehensive health insurance coverage that includes a wide range of services such as outpatient care, hospitalization, and prescription drugs. There is a growing demand for customizable insurance plans that cater to individual needs and preferences.

Trends in the market: One of the key trends in the Health insurance market in Saudi Arabia is the rising adoption of digital technologies. Insurers are leveraging digital platforms to enhance customer experience, streamline claims processing, and offer telemedicine services. Additionally, there is a noticeable shift towards value-based care and preventive health services to improve health outcomes and reduce overall healthcare costs.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, which aims to diversify the economy and improve the quality of healthcare services, is playing a significant role in shaping the Health insurance market. The government's focus on privatization and healthcare sector reform is driving innovation and competition in the insurance industry. Moreover, the introduction of mandatory health insurance for expatriates and the implementation of regulations to standardize insurance products are also influencing market dynamics.

Underlying macroeconomic factors: The steady economic growth, increasing population, and rising healthcare expenditures in Saudi Arabia are contributing to the expansion of the Health insurance market. As disposable incomes rise and awareness about the importance of health insurance grows, more individuals and businesses are investing in health coverage. Furthermore, the evolving regulatory landscape and government support for the healthcare sector are creating a conducive environment for market development.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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