Health Insurance Costs Soar in Saudi Arabia, Driven by Expanding Coverage and Concentrated Market Share
RIYADH – Health insurance premiums in saudi Arabia are increasingly dominated by a small segment of the market, with the sector now representing over 55% of total insurance premiums in the kingdom as of 2024. This growth, fueled by a 25-year expansion of mandatory health coverage initially targeted at non-Saudi employees in the private sector, is raising questions about affordability and the balance between comprehensive care and accessible pricing.
As its inception in 1999, Saudi Arabia’s health insurance system has broadened from major companies to encompass all private sector employees, becoming a primary pillar of the Kingdom’s insurance industry. While demographic shifts and economic conditions play a role in pricing, the expansion of the regime itself is a key driver of increased costs. The challenge, according to a recent report, lies in maintaining superior healthcare standards while ensuring coverage remains within reach for all citizens and residents.The report highlights the need for greater awareness of the factors influencing health insurance costs to build a lasting system capable of meeting growing demands. Decision-makers and stakeholders in the sector are urged to utilize a comprehensive understanding of these forces to inform policy development.
To see more in Macro numbers
