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Omar Al-Mahmood ... policy hailed.

Expert welcomes single health insurance policy plan

RIYADH, July 24, 2016

Further growth is expected in the health insurance sector in Saudi Arabia after the full application of the single health insurance policy for the employer, according to an insurance expert.

The new policy follows the resolution of the Council of Cooperative Health Insurance (CCHI) that came into effect on July 10 this year.

Omar Al-Mahmood, the vice president of medical insurance and Takaful at Tawuniya, explained that implementing the single health insurance policy for the employer will greatly reduce fraudulent unreal insurance. It also places restrictions on the issuance of individual policies and the system will allow for issuing only one insurance policy for the employer including his employees and their dependents.

He added: “The new regulation will make it mandatory for the employers to insure all employees who work in their organization and their family members. This will contribute to expanding the mandatory health insurance to include the employees whom employers, especially at Small to Medium Entities (SMEs), were not keen to provide them with insurance.”

Al-Mahmood stressed that CCHI’s resolution allows the issuance of one insurance policy under only one sponsor number, he pointed out that this amendment may double the administrative load for customers and insurance companies, but it will lead to the accurate calculation of health insurance loss ratios and then determine the price based on the actual results, as well as generate proper technical procedures to manage them.

In line with this new regulation, Tawuniya has completed its readiness to implement the single health insurance policy for the employer. The company has also launched a campaign to create awareness among its customers and prepare them for activating this regulation on the due dates recommended by CCHI to avoid the ceasing of their insurance policies. - TradeArabia News Service




Tags: Saudi | Insurance | Health |

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