The Saudi Arabia insurance sector has effectively managed to perform positively even in the face of slowdown, a new "Saudi Arabia Insurance Market Analysis" report said Friday. The total amount of insurance premium reached SR16.4 billion in 2010 from SR14.6 billion in 2009. Factors, such as increasing awareness level, burgeoning demand for health insurance, regulatory initiatives, and private sector participation have contributed to this growth. As the government has made health insurance compulsory for expatriates, the number of persons opting for insurance is likely to augment in future. The study said that categories under the non-life insurance segment will boost the overall Saudi Arabia insurance sector. Compulsory branches of insurances, such as health and motor insurance have already witnessed a significant growth during the past few years. Prominent growth of the premium amount under aviation insurance in 2010 has further sustained the momentum of non-life insurance segments. Saudi Minister of Health Dr. Abdullah Al-Rabeah said earlier his ministry has focused on awareness and preventive programs, adding that cooperation among GCC countries in the health field emphasizes the importance of exchanging expertise and joining efforts in order to develop various awareness and preventive programs. Recently, the MOH has signed a SR13 million ($3.4 million) deal with IT consultancy Devoteam, to act as strategic consultant on an e-services system to help manage health insurance in the Kingdom. The online system will provide improved communications for health service providers and insurers in Saudi Arabia, to improve efficiency and speed processes. The system will provide a range of functions such as registration and verification insurance cards of claimants, and online approval and payment of claims by insurance companies. The deal was signed by Minister Dr Al-Rabeah, who is also chairman of the Cooperative Health Insurance Council, and Stanislas de Bentzmann, co-chairman of the management board and chief executive officer of Devoteam Group. "The implementation of this important and vital program is a step forward and an outstanding achievement in the Kingdom of Saudi Arabia for Devoteam. Devoteam has always been the pioneer in the field of provision of business and technology consultancy services for its customers in the Kingdom of Saudi Arabia, and other countries in the gulf region and the Middle East. Therefore, CCHI has selected Devoteam as its partner to provide the Council with the necessary expertise to ensure the success of this strategic program, in line with international standards," Bentzmann said.
