Saudi Arabia Health Insurance Market Size & Share Analysis - Growth Trends & Forecasts

The Saudi Arabia Health and Medical Insurance Market is Segmented by Insurance Type (Individual Health and Group Health), Coverage Type (Inpatient, Outpatient, and More), Plan Tier (Bronze, Silver, and More), Insurance Model (Co-Operative and Conventional), Distribution Channel (Insurance Brokers, Bancassurance, and More), and End-User (SMEs, and More), and Region. The Market Sizes and Forecasts are Provided in Value (USD).

Saudi Arabia Health And Medical Insurance Market Size and Share

Saudi Arabia Health and Medical Insurance Market (2025 - 2030)
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Saudi Arabia Health And Medical Insurance Market Analysis by Mordor Intelligence

The Saudi Arabia health and medical insurance market is valued at USD 10.03 billion in 2025 and is on track to reach USD 13.74 billion by 2030, advancing at a 6.52% CAGR. Rapid digitization, expansion of mandatory coverage, and Vision 2030’s push to boost private-sector participation in healthcare from 40% to 65% underpin this growth. Mandatory e-claims processing through NPHIES is reducing cash-cycle times, while value-based purchasing via AR-DRG bundles is prompting richer benefit designs. New compulsory cover for dependents of private-sector Saudis immediately enlarges the insured pool by 3.2 million lives. Demand also rises as SMEs proliferate and mobile-first consumers channel 46% of claims through apps. Although GLP-1 obesity drugs and premium-ceiling regulations pressure margins, insurers are countering digital efficiencies and product innovation.

Key Report Takeaways

  • By insurance type, group plans led with 74.5% of Saudi Arabia health insurance market share in 2024; individual policies are set to expand at a 15.81% CAGR through 2030.
  • By coverage type, inpatient benefits captured 63.3% of the Saudi Arabia health insurance market size in 2024, whereas wellness/telehealth add-ons are projected to post an 18.52% CAGR over 2025-2030.
  • By plan tier, silver plans held a 42.2% revenue share in 2024; bronze offerings are forecast to grow at a 14.21% CAGR.
  • By insurance model, Takaful commanded 87.3% of the Saudi Arabia health insurance market size in 2024, while conventional insurance is expected to record a 15.33% CAGR by 2030.
  • By distribution channel, brokers accounted for 52.1% of the Saudi Arabia health insurance market share in 2024; digital aggregators & InsurTech platforms will advance at a 25.12% CAGR to 2030.
  • By end user, large corporates generated 56.4% of premiums in 2024; SMEs are positioned for 18.62% CAGR growth.

Segment Analysis

By Insurance Type: Individual momentum within group dominance

Group plans lock in 74.5% of the Saudi Arabian health insurance market share due to mandatory employer coverage, yet individual policies deliver the highest 15.81% CAGR. Digital apps such as Daman speed onboarding for freelancers and self-employed customers seeking portable benefits. Recent USD203 million and USD213 million group contracts with Saudi Arabia and the Saudi Electricity Company underscore the volume still anchored in corporate accounts. 

Meanwhile, the gig economy workforce amplifies individual uptake, giving carriers room to diversify beyond employer-centric models. The Saudi Arabia health insurance market size for individual plans is projected to accelerate as mobile enrollment and flexible riders capture price-sensitive consumers. Established insurers refine actuarial models to price self-funded risks, leveraging telehealth to minimize claim costs and reinforce insurer-insured engagement, while group carriers continue to differentiate via provider-network breadth and wellness-incentive programs.

Saudi Arabia Health and Medical Insurance
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By Coverage Type: Preventive add-ons eclipse inpatient growth

Inpatient benefits represented 63.3% of premiums in 2024, but wellness and telehealth riders exhibit an 18.52% CAGR, reflecting a preventive-care pivot. The Seha Virtual Hospital and Sehhaty app normalize virtual diagnostics for 24 million registered users, driving coverage beyond classic hospital care. Outpatient, maternity, and dental optics maintain mid-single-digit growth as base demand endures.

The Saudi Arabia health insurance market size attached to wellness riders is expanding rapidly as insurers pair app-based coaching with rewards that reduce chronic disease claims. This trend lowers hospital admissions over time, whereas inpatient-centric insurers confront rising specialty-drug costs. Consequently, product design now embeds wellness modules to preserve competitiveness and shore up loss ratios.

By Plan Tier: Cost-minded SMEs propel bronze plans

Silver packages accounted for 42.2% of revenue in 2024, but bronze tiers are rising at 14.21% CAGR. SMEs favor entry-level bronze cover USD133,000 limits for small firms meeting CHI mandates while minimizing payroll costs. Gold and platinum tiers keep their niche among high-income Saudis and multinationals needing premium networks and overseas benefits. The Essential Benefit Package allows large companies to opt for bronze plans with USD 267,000 limits, whereas higher tiers offer added services.

In the Saudi Arabian health insurance market, insurers are finding that while bronze growth offers them scale, the accompanying thinner margins push them towards digital onboarding and automated claims for profitability. The adoption of digital solutions helps streamline operations, reduce costs, and improve customer experience, which is critical in maintaining competitiveness. As SMEs evolve, their upgrade potential fosters a balanced plan mix, positioning insurers to cross-sell premium tiers as economic conditions brighten. This upgrade potential also allows insurers to diversify their portfolio and reduce dependency on lower-margin plans. Consequently, leveraging technology and targeting SME growth are key strategies for insurers to sustain long-term growth in this market.

Saudi Arabia Health and Medical Insurance
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Note: Segment shares of all individual segments available upon report purchase

By Insurance Model: Conventional grows inside a Takaful stronghold

Takaful, with its Sharia-compliant appeal, commands an 87.3% market share, reflecting its strong cultural alignment in Saudi Arabia. However, conventional insurance's 15.33% CAGR highlights the growing demand among expatriates seeking tailored solutions. International insurers are developing products that adhere to global benefit standards, catering to this emerging demographic. Meanwhile, Takaful firms focus on cooperative surplus distribution, and some carriers leverage dual licensing to operate both models, mitigating risks from demographic shifts.

As multinationals and foreign workers pursue smooth cross-border coverage, the market for conventional health insurance in Saudi Arabia is expanding significantly. This growth is driven by the increasing need for seamless and globally aligned insurance solutions. In response, Takaful leaders are integrating digital service layers to enhance member engagement and sustain their competitive edge. These efforts aim to preserve cultural relevance while offering convenience comparable to conventional insurance options.

By Distribution Channel: Digital aggregators narrow the broker gap

In 2024, brokers accounted for 52.1% of total premiums, but InsurTech platforms are surging with a 25.12% CAGR. The widespread use of smartphones and swift e-KYC authentication are making purchases easier, particularly for individuals and SMEs. To protect their market share, established intermediaries are utilizing white-label apps, merging advisory insights with user-friendly self-service features. This strategic approach allows traditional players to remain competitive in an increasingly digitalized insurance landscape.

As digital channels gain traction, the Saudi Arabian health insurance market is evolving. Insurers are now turning to API-driven quotation engines and automated underwriting to meet changing consumer expectations. Those who shy away from digital distribution may find themselves confined to stagnant niches as savvy, price-aware consumers increasingly sidestep traditional sales methods. The shift toward digitalization is reshaping the competitive dynamics, compelling carriers to innovate or risk losing relevance.

Saudi Arabia Health and Medical Insurance
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Note: Segment shares of all individual segments available upon report purchase

By End User: SME emergence anchors future expansion

In 2024, large corporates dominated the scene, accounting for 56.4% of the premium. However, driven by Vision 2030's push for entrepreneurship, SME policies are on track to see an impressive 18.62% CAGR. The government is actively supporting this growth by offering fee-exemption incentives for insurer mergers, which enhance the service capacity for SMEs. Additionally, venture capital funds are broadening the healthcare landscape, leading to a surge in demand for customized insurance solutions tailored to specific needs.

As SMEs continue to grow, their stake in Saudi Arabia's health insurance market is expanding. This shift is prompting insurers to develop flexible plans featuring installment-based premiums and the convenience of online enrollment. While large corporates still play a crucial role in sealing mega-contracts, their dominance is gradually being balanced. The ongoing trend of macro-diversification is steering incremental growth towards SMEs, expatriates, and self-employed nationals, reshaping the market dynamics.

Geography Analysis

Central (Riyadh) captured 37.4% of premiums in 2024, supported by dense employer bases and the Kingdom’s largest private-hospital footprint. Efficiency gains from the Riyadh First Health Cluster, which saved USD3.8 million and lifted patient satisfaction to 73.2%, reinforce demand for integrated insurance solutions[3]M. Alafeef et al., “Cluster-Based Healthcare Efficiency in Riyadh,” dovepress.com. Digital infrastructure and policy-setting proximity keep the Central region at the forefront of pilot programs, cementing its lead in the Saudi Arabian health insurance market.

Western (Makkah-Medina) posts the fastest 15.91% CAGR through 2030. Pilgrimage healthcare, port-city expansion, and the NEOM megaproject widen the risk base and spur insurer-provider partnerships. New medical cities and public-private ventures expand network capacity, while visitor insurance for Hajj and Umrah extends product lines year-round.

Eastern Province, anchored by energy-sector employers, remains a sizable contributor, whereas Northern and Southern regions lag due to lower population density and reliance on free Ministry of Health services. Primary-care center ratios declined to 0.62 per 10,000 residents in 2021, prompting insurers to employ telemedicine and mobile clinics to penetrate these areas. Geographic diversification strategies increasingly hinge on digital health to bridge infrastructure gaps and push overall Saudi Arabia health insurance market penetration beyond urban strongholds.

Competitive Landscape

Bupa Arabia, Tawuniya, MedGulf, Al Rajhi Takaful, and SAICO are the top five players, commanding over half of the market's premiums, signaling a moderate concentration. These industry leaders, leveraging scale advantages in network contracting, compliance, and data analytics, negotiate favorable reimbursements and pilot emerging capitation models. As regional health clusters privatize, competition for risk-sharing contracts intensifies. Simultaneously, InsurTech newcomers harness AI-driven underwriting to attract SMEs and individual clients.

Strategic focuses include vertical integration and technology adoption. Insurers are channeling investments into telehealth platforms, predictive analytics, and wellness ecosystems, aiming to reduce loss ratios and boost customer retention. Collaborations, like GE HealthCare’s radiology enhancement at Dr. Sulaiman Al-Habib Medical Group (HMG), not only improve provider outcomes but also strengthen insurer offerings. However, with regulatory premium ceilings in place, there is a push for cost containment. It drives mergers and operational efficiencies as players strive to safeguard profitability in Saudi Arabia's health insurance landscape.

New entrants are making waves with innovations in digital claims, embedded insurance, and on-demand coverage. In response, established players are enhancing their omnichannel distribution and launching loyalty programs linked to lifestyle applications. As the market shifts towards value-based care and consumer-centric models, the emphasis on technological prowess and sophisticated risk management will be paramount for competitive success.

Saudi Arabia Health And Medical Insurance Industry Leaders

  1. Bupa Arabia for Cooperative Insurance

  2. Tawuniya (The Company for Cooperative Insurance)

  3. MedGulf (Mediterranean & Gulf Cooperative Insurance & Reinsurance)

  4. Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful)

  5. Saudi Arabian Cooperative Insurance Company (SAICO)

  6. *Disclaimer: Major Players sorted in no particular order
Market Concentration
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Recent Industry Developments

  • February 2025: Tawuniya won a health insurance contract with Saudi Arabian Airlines valued at more than 5% of its 2023 revenue.
  • January 2025: MedGulf secured a health insurance deal with Saudi Electricity Company worth USD213 million, equal to over 40% of MedGulf’s 2023 revenue.
  • January 2025: Redesign Health and Sanabil Investments launched a healthcare venture studio targeting 20 startups in the Kingdom.
  • November 2024: Almoosa Health Company filed for a Saudi Exchange IPO to expand its hospital network.
  • August 2024: Dallah Healthcare agreed to acquire Al-Salam and Al-Ahsa Medical Services companies to deepen its Eastern Province footprint.
  • April 2024: Cigalah Healthcare and Abdi Ibrahim formed Abdi Cigalah Pharma, expected to add USD133 million to the economy within five years.

Table of Contents for Saudi Arabia Health And Medical Insurance Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 NPHIES real-time e-claims mandate (2024-25) accelerating insurer-provider adoption
    • 4.2.2 CHI Value-Based Purchasing (AR-DRG bundles) spurring richer benefit designs
    • 4.2.3 Compulsory cover extended to dependents of private-sector Saudis adding ~3.2 mn lives
    • 4.2.4 Vision 2030 SME boom (1 mn active SMEs by 2027) lifting micro-group policy demand
    • 4.2.5 Mobile-first consumers: 46 % claims via apps driving uptake of telehealth & wellness riders
    • 4.2.6 Privatization of 5 regional health clusters shifting risk to private payers via capitation
  • 4.3 Market Restraints
    • 4.3.1 GLP-1 obesity drugs adding USD 800 bn annual claims pressure from 2025
    • 4.3.2 CHI premium-ceiling circular (#156-2023) limiting repricing flexibility
    • 4.3.3 Only 62 % providers DRG-ready—coding gaps delay reimbursements
    • 4.3.4 Preference for free MOH services keeps coverage <35 % in northern/southern regions
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory & Technological Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Bargaining Power of Buyers
    • 4.6.2 Bargaining Power of Providers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry

5. Market Size & Growth Forecasts (Value, USD Million)

  • 5.1 By Insurance Type
    • 5.1.1 Individual Health Insurance
    • 5.1.2 Group Health Insurance
  • 5.2 By Coverage Type
    • 5.2.1 Inpatient Cover
    • 5.2.2 Outpatient Cover
    • 5.2.3 Maternity Cover
    • 5.2.4 Dental Cover
    • 5.2.5 Optical Cover
    • 5.2.6 Critical-Illness Riders
    • 5.2.7 Wellness/Telehealth Add-ons
  • 5.3 By Plan Tier
    • 5.3.1 Bronze
    • 5.3.2 Silver
    • 5.3.3 Gold
    • 5.3.4 Platinum
    • 5.3.5 Employer Self-Funded (ASO)
  • 5.4 By Insurance Model
    • 5.4.1 Co-operative (Takaful)
    • 5.4.2 Conventional
  • 5.5 By Distribution Channel
    • 5.5.1 Insurance Brokers
    • 5.5.2 Bancassurance
    • 5.5.3 Direct Sales Agents
    • 5.5.4 Digital Aggregators & InsurTech Platforms
    • 5.5.5 Corporate In-house Sales
  • 5.6 By End-User
    • 5.6.1 SMEs (<250 employees)
    • 5.6.2 Large Corporates
    • 5.6.3 Expatriates
    • 5.6.4 Saudi Nationals in Private Sector
    • 5.6.5 Government Employees (Supplemental)
    • 5.6.6 Self-Employed / Individual Citizens
  • 5.7 By Region
    • 5.7.1 Central (Riyadh)
    • 5.7.2 Western (Makkah & Medina)
    • 5.7.3 Eastern Province
    • 5.7.4 Northern Region
    • 5.7.5 Southern Region

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
    • 6.4.1 Bupa Arabia for Cooperative Insurance
    • 6.4.2 Tawuniya (The Company for Cooperative Insurance)
    • 6.4.3 MedGulf (Mediterranean & Gulf Cooperative Insurance & Reinsurance)
    • 6.4.4 Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful)
    • 6.4.5 Saudi Arabian Cooperative Insurance Company (SAICO)
    • 6.4.6 Walaa Cooperative Insurance Company
    • 6.4.7 GIG Saudi Cooperative Insurance Company (formerly AXA Cooperative)
    • 6.4.8 Malath Cooperative Insurance & Reinsurance Company
    • 6.4.9 Arabian Shield Cooperative Insurance Company
    • 6.4.10 Allianz Saudi Fransi Cooperative Insurance Company
    • 6.4.11 United Cooperative Assurance Company (UCA)
    • 6.4.12 Saudi National Insurance Company (SNIC)
    • 6.4.13 Al Sagr Cooperative Insurance Company
    • 6.4.14 Saudi Enaya Cooperative Insurance Company
    • 6.4.15 Gulf General Cooperative Insurance Company
    • 6.4.16 Chubb Arabia Cooperative Insurance Company
    • 6.4.17 Arabia Insurance Cooperative Company
    • 6.4.18 Allied Cooperative Insurance Group (ACIG)
    • 6.4.19 Al Etihad Cooperative Insurance Company
    • 6.4.20 Al Alamiya for Cooperative Insurance Company

7. Market Opportunities & Future Outlook

  • 7.1 White-Space & Unmet-Need Assessment
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Saudi Arabia Health And Medical Insurance Market Report Scope

Health insurance implies a form of coverage where policyholders pay regular premiums, and in return, the insurance provider covers their medical and surgical expenses during emergencies.

The health & medical insurance industry in Saudi Arabia is segmented by type of insurance provider, type of customer, type of coverage, product type, demographics, and distribution channel. The type of insurance provider is sub-segmented into public sector insurers, private sector insurers, and standalone health insurance companies. The type of customer is sub-segmented into corporate and non-corporate. The type of coverage is sub-segmented into individual insurance coverage, family insurance coverage, or floater insurance coverage. Product type is sub-segmented into disease-specific insurance and general insurance. Demographics is sub-segmented into minors, adults, and senior citizens, and distribution channel is sub-segmented into direct to customers, brokers, individual agents, corporate agents, online, bancassurance, and other distribution channels. The report offers market size and forecasts for the health & medical insurance industry in Saudi Arabia in value (USD) for all the above segments.

By Insurance Type Individual Health Insurance
Group Health Insurance
By Coverage Type Inpatient Cover
Outpatient Cover
Maternity Cover
Dental Cover
Optical Cover
Critical-Illness Riders
Wellness/Telehealth Add-ons
By Plan Tier Bronze
Silver
Gold
Platinum
Employer Self-Funded (ASO)
By Insurance Model Co-operative (Takaful)
Conventional
By Distribution Channel Insurance Brokers
Bancassurance
Direct Sales Agents
Digital Aggregators & InsurTech Platforms
Corporate In-house Sales
By End-User SMEs (<250 employees)
Large Corporates
Expatriates
Saudi Nationals in Private Sector
Government Employees (Supplemental)
Self-Employed / Individual Citizens
By Region Central (Riyadh)
Western (Makkah & Medina)
Eastern Province
Northern Region
Southern Region
By Insurance Type
Individual Health Insurance
Group Health Insurance
By Coverage Type
Inpatient Cover
Outpatient Cover
Maternity Cover
Dental Cover
Optical Cover
Critical-Illness Riders
Wellness/Telehealth Add-ons
By Plan Tier
Bronze
Silver
Gold
Platinum
Employer Self-Funded (ASO)
By Insurance Model
Co-operative (Takaful)
Conventional
By Distribution Channel
Insurance Brokers
Bancassurance
Direct Sales Agents
Digital Aggregators & InsurTech Platforms
Corporate In-house Sales
By End-User
SMEs (<250 employees)
Large Corporates
Expatriates
Saudi Nationals in Private Sector
Government Employees (Supplemental)
Self-Employed / Individual Citizens
By Region
Central (Riyadh)
Western (Makkah & Medina)
Eastern Province
Northern Region
Southern Region
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Key Questions Answered in the Report

What is the current size of the Saudi Arabia health insurance market?

The market stands at USD10.03 billion in 2025 and is projected to hit USD13.74 billion by 2030.

Which segment is growing fastest in Saudi health insurance?

Individual policies show the quickest expansion with a 15.81% CAGR, fueled by freelancers and self-employed nationals.

Why are wellness and telehealth riders gaining popularity?

Mobile-first consumers and government digital health initiatives drive adoption, giving wellness riders an expected 18.52% CAGR.

How does Vision 2030 affect health insurance demand?

Vision 2030’s goal of 1 million active SMEs boosts micro-group policies and prompts insurers to design affordable bronze-tier plans.

What are the biggest cost pressures for insurers?

High-priced GLP-1 obesity drugs, which may add USD 800 million in annual claims, and premium-ceiling regulations both squeeze margins.

Who are the leading insurers in Saudi Arabia?

Bupa Arabia, Tawuniya, MedGulf, Al Rajhi Takaful, and SAICO collectively hold about the majority of the total premium, giving the market a moderate concentration.

Saudi Arabia Health And Medical Insurance Market Report Snapshots

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