Expat rules fuel Saudi insurance boom

Saudi Arabia’s insurance market is set to reach 30 billion riyals ($8 billion) in the next ten years, according to industry experts.

The existing 7 billion riyals market is expected to reach 15 billion riyals in 2009, and to double again with the introduction of compulsory health insurance on the kingdom’s entire 16 million population, Saudi daily Arab News reported on Monday.

Mohammed Abbas Abdul Jaleel, assistant general manager of Allied Cooperative Insurance told Arab News “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.”

The Saudi Arabian Monetary Agency recently reported 64% growth in the insurance market, from just SR5.2bn in 2005, with the introduction of mandatory health insurance on expatriates.

Companies have until March 208 to ensure their workers are covered. 18 insurance companies have been granted licences, with 24 more new companies expected to enter the market, Jaleel said.

The first phase of the programme demanded compliance from companies with over 500 employees by July this year.

Seven million expatriates are to come under the scheme through 18 companies. Resident certificates will be renewed only on production of relevant health insurance cover on foreign workers.

The Ministry of Health said 400 health providers have been appointed to attend to the needs of those covered.

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