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Insurance market in KSA to reach SR30b

JEDDAH — Saudi Arabia's insurance market is poised to reach SR30 billion in 10 years, according to experts in this sector of business.

"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," said Mohammed Abbas Abdul Jaleel, assistant general manager of Allied Cooperative Insurance Group.

He added that the existing SR7 billion market would reach SR15 billion in 2009 and this will be doubled when the government introduced compulsory health insurance on all its 16 million population.

Prince Mohammed bin Bandar bin Abdul Aziz, chairman of Al Ahliah Cooperative Insurance Company, said that the concept of insurance in the Kingdom is new to its people. However, he added that it tends to grow faster due to growing demand.

In addition to health insurance, licensed insurance companies in the Kingdom are planning to introduce new products and services in the field of insurance in automobiles, movable and immovable properties, life, sea, engineering and medical errors.

According to a recent report from the Saudi Arabian Monetary Agency (SAMA), the insurance market witnessed a 64 per cent growth, from only SR5.2 billion in 2005, with the introduction of mandatory health insurance on expatriates.

SAMA has given a deadline for all companies to cover their workers with health insurance by March 2008.

Jaleel said that so far SAMA has given licences to 18 insurance companies and 24 more new companies are expected to enter this competitive market.

According to Dr Abdullah Al Shareef, secretary-general of the Cooperative Health Insurance Council, seven million expatriates would come under the scheme through 18 insurance companies.

He said that so far, a sizable number of expatriates who are working in companies that have a large workforce have been covered under this scheme.

He added that the programme is being implemented in phases to cover all sectors. The first phase covered those establishments that have more than 500 employees. They were given a deadline to cover their staff with medical insurance in July this year.