Medical Insurance is compulsory in Saudi Arabia for the companies where the expat members are more than 100. However very recently the Passport Office is also insisting upon smaller companies to produce Medical Insurance inorder to process their Residence Permits(Iqama).
Now Medical Insurance is being supervised by Council for Co-operative Health Insurance. The purpose of this body is to regulate Medical Insurance in Saudi Arabia. The Insurance Companies, Clinics, Hospitals and other Medical providers need to be registered with CCHI inorder for other authorized parties to deal with them.
They have also standardized Medical Insurance Product. Prior to this very few companies in Saudi Arabia did provide Medical Insurance.
But now all the companies where the expat employees are more than 100 members have a proper Medical Insurance in place.
Very soon all the members of the entire population may end up having some sort of Medical Insurance in place. Saudi Arabia being a largest Country in the Arabian Peninsula. Many Insurance companies have entered the market with great enthusiasm to capture the Medical Insurance Market. But the profitability of Medical Insurance is questionable. In the past quite a few companies have closed down their operations due to losses in Medical Insurance.
However no one can deny the future growth of Insurance Market in Saudi Arabia.
