MetLife Saudi plans to launch SME medical plan, says CEO

As Saudi Arabia continues to reform its insurance sector and align it with international practices, MetLife AIG ANB chief executive Carl Tachdjian tells Argaam he’s looking forward to expanding his company’s lines of businesses and distribution, and contributing to the growth of the industry.

Q: What challenges do you expect to face from Saudi Arabia’s compulsory healthcare insurance scheme?

A: The compulsory healthcare insurance scheme will play a big role in the growth of the industry in the coming few years. Having said that, insurers must find ways to operate efficiently and effectively, differentiate themselves from the competition, provide affordable and competitive pricing, as well as keep a high level of service standard with the increasing number of covered individuals while trying to remain profitable.

Employers will find their own challenges to keep up with the increasing medical insurance cost.

Q: What kind of problems will the plan face during implementation, especially with SMEs?

A: The new scheme will make it compulsory for SMEs to provide health coverage to all of their employees and their dependents. This will no doubt be an added administrative load for SMEs who are neither geared to handle such practices nor ready with the additional fees which will accompany the implementation to have everyone on board.

At MetLife AIG ANB, we are planning to launch an “SME medical plan,” which will be packaged in a simple, easy to purchase, and cost-effective way to cater to the SMEs.

Q: Will the Insurance sector attract more international firms?

A: Most insurance companies in the Saudi market operate via joint ventures and or alliances with international players, particularly on the medical side.

There is clearly an abundance of insurance and reinsurance companies in the country– around 35 players– which makes us believe that mergers and acquisitions are more likely to happen than new international players entering the market.

Q: How do you see the insurance sector in Saudi Arabia developing over the next two years?

A: Despite the challenges and uncertainties, globally and regionally, we expect the insurance sector in Saudi Arabia to maintain its growth over next two years, particularly in healthcare and motor segments.

The growing demand for healthcare services is mainly being driven by the rapid increase in the country’s population, which also contributes to the evolving need for new sophisticated medical solutions and treatments readily available locally in the Saudi market.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com