GCC Health Insurance Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

GCC Health Insurance Market Emerging Trends

Digital Transformation and Technology Integration Is Key Trend

• The increasing use of automation and telehealth services to detect fraud, design insurance policies, and accelerate the claim process is key trend in the market.
• Insurers are applying automation for telehealth services and AI to identify fraud, customize underwriting, and accelerate the claims process.
• These technologies provide convenience, reduce healthcare charges, and enable customers to easily manage e-insurance policies.
• Insurance companies are collaborating with smart wearables brands to observe user health data and provide fitness-linked insurance.
• Cloud and blockchain adoption increases reliability and enable easy sharing of patient data and insurance records among stakeholders.
• The SAMA and DIFC Innovation Hub are testing insurtech models to enhance digital innovations, lower maintenance costs, and provide more-personalized plans to consumers.
• The Dubai Health Authority's digital health strategy also supports the use of AI in healthcare services.
• The Bahrain Economic Vision 2030 and the Central Bank of Bahrain support digital health insurance innovation and regulate the environment for AI-enabled insurance.

Rising Health Insurance Premiums Is Major Driver

• The steady increase in insurance rates due to the usage of advanced medical tools, such as robotic surgeries, is a key driver for the market.
• The increasing number of patients with chronic diseases is leading to a high demand for more health plans.
• Insurance companies now cover various expensive treatments, including dialysis, organ transplants, dental care, and fertility treatments, which raises premium rates.
• The increasing non-native population in regional countries depends on private healthcare, which drives the sale of expensive healthcare plans.
• As per studies, over 30 million expatriates live in Gulf Cooperation Council countries; the total population of these countries is around 59.5 million.
• Additionally, the rising use of advanced technologies increases the operational costs, which influences the rates.
• The Saudi Arabia CCHI ensures that premiums are traceable and valid and protects consumers from unfair charges.

GCC Health Insurance Market Segmentation Analysis

Type Analysis

The group category held the larger market share, of 60%, in 2024, and it will have the higher CAGR, of 5.6%. Several countries, such as Oman, have made it essential for employers to provide health insurance to their workers. Approximately 70% of the health insurance in the U.A.E. is purchased under group plans. Many companies are therefore providing better health benefit plans to retain employees. The Vision 2030 of Saudi Arabia attracts many businesses to enter this region, further increasing the demand for organizational health coverage. These plans are cost-effective and easier to manage, unlike individual policies. Furthermore, insurance providers are using automation to deliver fast and optimized group insurance plans.

The types analyzed in this report are:

• Individual
• Group (Larger and Faster-Growing Category)
  • Corporate
  • Family
  • SME

Service Provider Analysis

The private category held the larger market share, of 65%, in 2024, and it will have the highest CAGR, of 5.7%. This is due to the increasing non-native population, compulsory private coverage laws, and rising demand for customized health plans. In the U.A.E., more than 70% of health insurance plans are controlled by private companies. Private insurers are integrating digital technologies, such as automation and AI, to create personalized plans, assess the validity of claims, and check fraud. Governments of GCC countries promote innovation, such as Dubai Health Authority’s digital strategy, which helps private companies provide better services. Moreover, the rapid shift to value-based care enhances the growth of private players.

The service providers analyzed in this report are:

• Public
• Private (Larger and Faster-Growing Category)

Term Analysis

The short category held the larger market share, of 55%, in 2024, because of their coordination with yearly contracts, visa extensions, and the specific rules and regulations in GCC countries. These policies offer flexibility and simplify yearly processes for both individuals and employers. The huge expatriate population of the Middle East prefers short-term policies as a better and practical solution as they could be migrating somewhere else soon. For employers, these policies are easily manageable and cost-effective. Moreover, many GCC regulations require employees to offer basic annual health plans, further boosting the demand for short-term policies.

The long category will have the higher CAGR, of 5.8%, due to the rising demand for broad and extended health coverage among businesses, families, and native residents. For higher convenience, a rising number of people are looking to avoid the yearly renewal burden. Long-term policies offer better benefits, such as fixed rates, extensive coverage, and long-term savings.

The terms analyzed in this report are: 

• Short (Largest Category)
• Long (Fastest-Growing Category)
  • <1 Year
  • 1-5 Years
  • 5 Years

Distribution Channel Analysis

The agents category held the largest market share, of 45% in 2024, due to their ability to guide people through complex terms and provide customized insurance solutions. Medical insurance agents are trusted by several individuals, especially non-native populations, for their skills and regional understanding.

The online sales category will have the highest CAGR, of 6%, due to the rising usage of the internet and smartphones and increasing consumer demand for fast, easy, and clear terms & conditions. People now want to easily compare and purchase health insurance plans digitally.

The distribution channels analyzed in this report are:

• Agents (Largest Category) 
• Brokers
• Banks
• Online Sales (Fastest-Growing Category) 
• Others

GCC Health Insurance Market Regional Outlook

Saudi Arabia held the largest market share, of 40% in 2024, due to the wide-ranging structural development and rising demand for health policies. The ongoing government initiatives and various policy reforms, such as digital insurance regulations, further drive the insurance sector. With 36.9 million people, Saudi Arabia is the most-populated GCC member, which leads to a large patient population and a resultingly high demand for health insurance.

Kuwait will have the highest CAGR, 6.4%, due to stable population growth and various government initiatives for economic and social development, such as Vision 2035. In addition, the Government of Kuwait supports public–private partnerships and improvements in the healthcare system, which drives the demand for insurance.

The countries analyzed in this report are: 

• Saudi Arabia (Largest Category) 
• U.A.E.
• Qatar
• Oman
• Bahrain
• Kuwait (Fastest-Growing Category)

GCC Health Insurance Market Share Analysis

This market is fragmented because of the presence of a large number of local and international public and private insurers. Each GCC nation supports the growth of emerging and niche insurers through regulatory ownership and licensing bodies, to address the evolving healthcare needs. As a result, no company dominates the market, which remains highly competitive.

GCC Health Insurance Market Developments

• In October 2024, the U.A.E. Federal Budget granted AED 71.5 billion for innovation, healthcare, and insurance.
• In July 2024, the U.A.E. mandated health insurance for tourists on a visa, to protect overseas visitors and encourage tourism.
• In March 2024, AXA Global Healthcare and Daman launched their new International Private Medical Insurance Plan.
• In October 2023, Cigna Healthcare and AlKhaleej Takaful partnered to provide cross-border health insurance in Qatar.