Evolution in Technology Has Boosted the Growth in Personal Accident and Health Insurance Sector in Saudi Arabia: Ken Research

Accidents are unforeseen and severely impact human life and well-being. Personal accident insurance policy provides cover against accidental death, permanent or partial disability caused due to an accident. Now-a-days, quality medical treatment is quite expensive and it is compulsory to have a health and a personal accident cover for every individual. The personal accident insurance can offer a financial guard against medical expenses caused by any illnesses, injuries and other medical conditions. Comparatively, a health insurance policy provides a comprehensive cover for all sorts of injuries and illnesses.

Saudi Arabia is gradually reviving from the global economic crisis with strong domestic funding and high investments that are fuelled the economic growth of the company. Strict regulations are passed by Saudi Arabian Monetary Authority (SAMA) to facilitate the country’s development. Evolution of industries in the Middle East over the recent years has encouraged businesses to adopt advanced technologies and IT integration solutions to enhance their operations and revenue. Information technology is a key enabler of all business functions in Saudi Arabia. This trend was also observed in Saudi’s healthcare sector where manual records were transformed into electronic health records. Therefore, health and medical insurance for every individual is mandatory due to the implementation of electronic health records. This trend has encouraged the medical and health insurance market growth.

According to the study “Personal Accident and Health Insurance in Saudi Arabia, Key Trends and Opportunities to 2020”, it was observed that health insurance and personal accident insurance policies are the fastest growing segments in the Saudi Arabian insurance sector. Health insurance has become compulsory for all emigrants and also witnessed a drastic increase in the number of insured people. With more technology evolved in industries there is less chances of any accidents but possessing a personal accident insurance policy may come handy at the time of accidents.

Individuals working in Saudi Arabia are provided with health insurance by their employers. Saudi has a regulation of Council of Cooperative Health Insurance (CCHI) that issues health and medical insurance for both private and government sectors. The leading players in Saudi Arabia’s personal accident and health insurance market are Tawuniya, Bupa Arabia, Medgulf Insurance, Malath Cooperative Insurance and Reinsurance Co., UCA, AXA-Cooperative, AlRajhi Takaful, SABB Takaful, Saudi Arabian Cooperative Insurance Company (SAICO), and Allianz Saudi Fransi. All these leading players work for both corporate and individual customers with flexible and comprehensive plans for personal accident and health insurance.

Saudi Arabia has both public health services and private health system which cater the needs of the country’s population. Growth in Saudi’s personal accident and health insurance sector is affected due to high economic development, population growth, rising healthcare expenditure, increased consumer annual disposable income, favourable regulatory environment and consumer awareness in insurance policies. The personal accident and health insurance market has experienced a consistent positive growth over the past five years in Saudi Arabia. Saudi Arabia’s personal accident and health insurance market accounts for more than 60 percentile of the insurance market. Therefore, it was observed that Saudi Arabian personal accident and health insurance market will witness a steady and continuing growth over the coming years.

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