Interview: Tal Hisham Nazer, CEO, BUPA Arabia, on regulatory changes shaping the sector and increased public-private collaboration
In what ways has the health insurance sector adapted to meet the needs of a growing population?
TAL HISHAM NAZER: The Saudi health insurance sector has been on a transformative journey since its inception in the mid-1990s. At that time, private health care facilities were limited, primarily concentrated in the three major cities, and focused on standard medical specialities. The phased enforcement of mandatory health insurance for private sector employers provided investors in private health care with the confidence to project future demand and develop infrastructure accordingly.
Today, we have a dynamic private medical sector, with leading providers publicly listed on the Saudi stock exchange, offering sophisticated specialities and innovative services. This expansion has alleviated operational and financial pressure on public health care facilities, which are continuously evolving under the Health Care Transformation Programme, part of Vision 2030, the Kingdom’s development roadmap. However, despite this advancement, there is still a considerable gap in the availability of high-quality, affordable primary care and population health management services.
By what means can private health insurance providers evolve in collaboration with public health care systems in terms of accessibility?
NAZER: Private health insurance providers have historically collaborated with public health care facilities, particularly in regions where private medical services were limited or advanced specialities were only available in government hospitals. With the Health Care Transformation Programme, public health care facilities are transitioning into integrated clusters under the Health Holding Company. This shift is expected to boost efficiency, improve service quality, and increase competition in the sector. As public health care institutions enhance their service delivery, they will contribute to easing inflationary pressure on medical costs, ensuring that both health care and insurance remain affordable.
How is the industry moving towards promoting preventive health care measures and fostering a culture of long-term wellness among policyholders?
NAZER: While preventive health care and long-term wellness are clear priorities, implementing them effectively within the health insurance framework requires regulatory alignment. Currently, health insurance policies operate on an annual renewal cycle, which limits insurers’ incentive to make significant upfront investment in preventive care or wellness programmes that may not yield immediate financial returns. Another critical focus is managing chronic conditions, which, despite affecting less than 20% of the population, account for approximately 40% of health care spending. By leveraging technology and data analytics, proactive interventions that ensure better control of chronic diseases can be introduced, ultimately reducing the long-term burden on the health care system.
What regulatory developments are shaping the overall health insurance landscape?
NAZER: The most significant regulatory shift in Saudi Arabia’s insurance sector occurred in August 2023 with the establishment of the Insurance Authority, consolidating oversight under a single regulatory body. This move ended more than two decades of dual regulation between the Saudi Central Bank and the Council of Health Insurance, marking a pivotal moment for the industry. The creation of the Insurance Authority presents a unique opportunity to modernise the regulatory framework and address long-standing challenges within the sector. Encouragingly, the entity has engaged industry stakeholders in shaping its national insurance strategy, which is expected to lay the groundwork for a comprehensive and forward-looking set of regulations. The core priorities for regulatory reform should include enhancing transparency, supporting greater competition, and introducing policies that can champion innovation in insurance products and health care delivery.
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