GAC: Private health insurance 'highly concentrated'; improved regulations needed

Logo of General Authority for Competition (GAC)

The General Authority for Competition (GAC) issued a summary of the study conducted on the structure of the health insurance sector and the impact of the behavior of the companies operating in it on competition.

The authority said that it is preparing pivotal studies of market structures and carefully studying monopolistic anti-competitive practices in various sectors, with the aim of showing the current situation of the sector and the status of competition in it, as well as reviewing international standards and best practices that can help in understanding the current situation of the relevant market in the Kingdom, according to Saudi Press Agency.

The study aimed to analyze and define the challenges facing effective competition in the health insurance sector, in comparison with the leading international best practices in the field, in order to draw lessons learned from them, in addition to proposing improvement measures and providing the necessary recommendations to improve the business environment in the Kingdom's health insurance and health care sectors.

Furthermore, it came with the participation of many government agencies, such as: the Ministry of Health, the Council of Health Insurance, the Saudi Health Council, and many other relevant authorities.

The study reached a set of results, most notably that the level of concentration in private health insurance is high compared to the group of reference countries.

It recommended improving regulations, claims exchange processes between insurance companies, and reducing barriers to entry and expansion in the sector.