Future of health insurance sector 'promising', talks on suitable profit margin ongoing: Bupa Arabia CEO

Tal Nazer CEO of Bupa Arabia for Cooperative Insurance

The health insurance sector has a promising future, in light of Vision 2030 and mandatory health insurance for citizens, as well as facilitation of investments for health insurance firms, said Tal Nazer, CEO of Bupa Arabia for Cooperative Insurance Co.
 

He told the virtual “Fin Talk” forum that is organized by the Financial Academy that the Kingdom's strong economic growth will reflect positively on the insurance sector. In addition, the cancelation of Article 117 of the Executive Regulations of the Health Insurance Law will open opportunities for the insurance companies through investment in several sectors. This includes owning or operating facilities for the purpose of providing healthcare services to the insured persons.
 

The major challenges facing the insurance sector in general and health insurance in particular include the very high fees on the health insurance sector, in addition to the sector's low profit margin, Nazer said, noting that legislators discuss with the private sector how to learn from past mistakes and build a strong sector.
 

The key challenge that insurance companies faced this year and will face in 2023 is the inflation in health insurance rates that exceed 10%.
 

Regarding mergers in the insurance sector, the top executive said merger is an appropriate option for insurance companies, as it results in stronger entities ready for competition. When competition gets fiercer, it will reflect positively on the sector development.
 

Bupa Arabia focused on digital investment over the next five years, Nazer said, adding that the company explores several investment opportunities in digital health inside and outside the Kingdom. The insurer also looks for major investments in the fields of insurance and health insurance, as it is currently working on a strategy focused on the health field.