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Market Entry - Health & Medical Insurance Industry in Saudi Arabia: Analysis of Growth, Trends and Progress (2020 - 2025)

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About the Market

The health insurance industry is one of the cardinal components of the global economy by virtue of the amount of revenue it generates, the extent of the global investment, and most prominently the indispensable socio-economic role it plays in securing personal and business risk in the event of unforeseen problems. The key issues in the insurance industry include rising competition, generally soft pricing conditions and tight profit margins. Moreover, the economic turbulence in 2008 has affected employer and corporate health insurance business in the developed countries to some extent, due to cost cutting and lay-off of employees and slowdown of new recruitments. However, at individual levels, the market has not shown any significant slowdown. The health insurance market in developed nations is consolidated by few major players who cover more than 80% of private and public (medicare and medicaid) managed insurance. The cardinal challenges for new capital entrants in the health insurance market include immense competition and rising customer expectations. Success here would be enhanced by expanding digital capabilities, making insurance products easier to understand, compare and purchase. The health insurance market especially in the EU5 countries (U.K., Germany, France, Italy, and Spain) is quite stable owing to a significant contribution from the government. The growth perspective for private players is limited due to universal health coverage plans in these countries. Furthermore, in developing regions the health insurance market for private players continue to challenge as economic recovery throughout the region is overshadowed by low business investment rates and slower industry growth. In some developing nations, the growth prospects remain high due to increasing GDP, rise in disposable income, and growing trend toward health security. Furthermore, the growth of the middle class and high net worth population in these regions presents an immense opportunity for international players to exploit the emerging market. Major players in the market include United Health Group Inc., Allianz SE, AIA Insurance Group, Express Scripts Holding Company, Zurich Insurance Group Ltd., AXA, Aviva Plc, Aetna Inc., International Medical Group, Apollo Munich Health Insurance and Cigna Corporation.

About the Geography

Saudi Arabia is a monarchical state with large oil reserves and is one of the leading members of OPEC. It is an oil-based economy and the government controls most major economic activities. Due to the low oil prices, the government is focusing on expanding its healthcare, education, nuclear, construction, and tourism industries. It is the third largest recipient of FDI in western Asia.

Saudi Arabia has a stable economy, a large local market with a high spending capacity, sound infrastructure, and a well-regulated banking system. Political and social tensions along with the policy of “Saudisation”, which favors domestic labor, have been major obstacles to FDI. Laws regarding intellectual property are not transparent and the laws enforce segregation of sexes in most business and social settings. To attract investors, the government recently announced the opening of the retail and wholesale sectors to 100% foreign ownership. Extensive privatization programs and controlled inflation add to the reasons for FDI. Investors can form joint stock companies, branch offices, and limited liability partnerships only, as a foreigner is not allowed to conduct business as a sole proprietor in Saudi Arabia.

The government also encourages companies to hire local women to improve workplace sex ratios.

                                                                                     

Component Name

Unit

GDP (USD billion)

646

GDP Annual Growth Rate

1.4

GDP Per Capita

21313

Unemployment Rate

5.6

Inflation Rate

3.3

Consumer Price Index (CPI)

138

Interest Rate

2

Balance of Trade (USD billion)

4.344

Business Confidence

3

Manufacturing PMI (Index Points)

55.3 Index Points

Ease of Doing Business

82

Competitiveness Rank

36

Corruption Rank

48

Consumer Confidence

104

Consumer Spending (USD billion)

68.807

                                             Corporate Tax Rate         

20

            

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

 

1. Introduction

                1.1 Scope of the Report

                1.2 Regional Analysis

                                1.2.1 PESTLE Analysis

                                1.2.2 Analysis of Ease of Doing Business

2. Market Dynamics

                2.1 Drivers

                2.2 Restraints

                2.3 Opportunities

3. Market Demand Analysis

                3.1 Socio-Economic Segmentation

                3.2 Demographic Strengths & Weaknesses

                3.3 Spending Patterns

                3.4 Target Market Identification

4. Market Size of Health & Medical Insurance Industry (USD millions)

                4.1 By Product

                4.2 By Providers

5. Market Entry

                5.1 Market Entry: The Strategy

                                5.1.1 Types of Entry Modes, by Market Entry Objectives

                                5.1.2 Competition Analysis

                                                5.1.2.1 Market Share

                                                5.1.2.2 Strategies Adopted, Recent Events 

                                5.1.3 Pricing Strategy

                                5.1.4 Supply Chain Analysis

                                                5.1.4.1 Trade (Import-Export Analysis)

                                                5.1.4.2 Distribution Network & Retail Analysis

                5.2 Market Entry: The Administration

                                5.2.1 How to Register a Company (Flowchart)

                                5.2.2 Registration Processes 

                                                5.2.2.1 Ministries Involved

                                                5.2.2.2 Criteria and Conditions

                                5.2.3 List of Forms & Documents

                                5.2.4 Product Control Guidelines specified by the Government

6. Sources

7. Disclaimer

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