Friday, June 24, 2016

Families can have Health Insurance in 2 Companies

The CCHI or the Council of Cooperative Health Insurance has come out to deny reports which had emerged that members of the same family will be prohibited from having medical insurance from two different insurance providers, or the myth that these people will not be allowed to travel outside of the Kingdom. The Spokesman for the council, Yasser Al Maarick stated that there is absolutely no truth to these reports. The council has not issued any new instructions which concern the health insurance policies. He added that they are not the authority or the party who can ban travel. The spokesman spoke to the Al Riyadh newspaper in which he stated that the recent reports by the media to this effect were totally false.

He stated that the medical insurance provider companies are completely aware of issuing an insurance policy for the employee and their dependents that are entitled to have this service. This would mean that the employee along with his wife and children should be kept on the same insurance policy. However there is nothing wrong or illegal in having medical insurance from different companies. The premiums for Health Insurance in the market in Saudi Arabia have grown by 20 percent in the past year to reach the milestone of $ 5 billion. This accounts for the major chunk of the total premiums. This is in accordance to an analysis made by the Argaam business news website, about the published financial data of the insurance companies operating in the Kingdom.

The sector for health insurance makes up for 52 percent of the total premiums which have grown to SAR 36.37 Billion in the past year. The proportion is the same as it was in 2014. In general the gross written premiums in the Saudi Insurance markets have increased by 19 percent in the past year up to 36.37 billion SAR from SA 30.48 billion in 2014.

The same study has also shown that the three companies namely Bupa Arabia, Tawuniya (Company for Cooperative Insurance) and Medgulf have collected 79 percent of the total premiums for health insurance in the year 2015. The insurance market of Saudi Arabia is currently the second fastest growing market in the GCC or Gulf Cooperation Council region and still has plenty of potential to grow more. Where the health and medical insurance sectors in Saudi Arabia are dominating the Saudi Insurance market, it is expected that other types of covers will be gaining momentum in the years which are to follow.

The population of Saudi Arabia is becoming increasingly wealthy and is also gaining awareness of the various benefits which are provided by insurance, which will surely fuel the growth of this sector even more. Insurance is not something which is prevalent in the majority of the third world and some of the 2nd world countries. However in first world countries such as the Kingdom of Saudi Arabia, USA and others, insurance has become a vital part of their lives.

Source: Saudi Gazette

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