The Saudi Arabia Council of Health Insurance (CHI) has announced penalties against several employers for failing to meet mandatory health insurance obligations for their employees and their eligible family members.
These actions follow previous warnings urging compliance with Saudi Arabia’s Health Insurance Law.
Under Article 14 of the law, employers who fail to provide health coverage or neglect to pay insurance premiums must settle any outstanding amounts and may face additional fines. The penalties can reach up to the equivalent of an annual premium per insured individual. In certain cases, noncompliant employers may also be restricted from hiring new workers on a temporary or permanent basis.
CHI spokesperson Eman Alturaiki reiterated the council’s commitment to enforcing regulations to safeguard health insurance beneficiaries.
“We consistently monitor the application of regulations to ensure mandatory health insurance coverage for all employees and their dependents,” she said.
She urged employers to comply with the regulations and provide their employees with the required health insurance coverage.
The CHI continues to oversee regulatory enforcement as part of its broader initiative to promote transparency and accountability in Saudi Arabia’s insurance sector.
Saudi Arabia’s general insurance industry is forecasted to expand significantly over the next four years, with gross written premiums (GWP) projected to rise from SAR 68.8 billion in 2024 to SAR 105.3 billion by 2029, according to research from GlobalData.
The market is expected to grow at a compound annual growth rate (CAGR) of 8.9% during this period.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, noted that increasing capital requirements and market consolidation are playing a significant role in shaping the industry’s trajectory.
“The growth of the general insurance industry in Saudi Arabia is expected to be driven by market consolidation led by an increase in the minimum capital requirement,” he said.
The expansion of industries such as transportation, logistics, clean technology, and mining is also expected to contribute to increased demand for various types of insurance coverage.
Personal accident and health (PA&H) insurance remains the dominant segment, projected to account for 61.4% of total GWP in 2024. The segment is forecasted to grow by 9.4% in 2025, driven by rising healthcare demand and regulatory measures aimed at expanding access.
Government-led reforms, including healthcare sector privatisation and the introduction of digital health services, are expected to further boost the PA&H segment. Additionally, new requirements mandating health insurance coverage for domestic workers in households employing four or more workers are anticipated to increase premium volumes.