1. Health Insurance in KSA
Bupa Arabia Perspective
May 2015

2. KSA Health Insurance Industry: Five Phases
Pre-Enforcement (pre-2006)
Rush for Growth and Capacity Building (2006 – 2011)
Market Restructuring
( )
Price Adjustment and Innovation
(2014 – 2015)
The Future: Continued Growth and Regulatory Change
(post 2015)

3. KSA Health Insurance Industry: Pre-Enforcement
Lives Covered
Saudi Health Insurance Market
Bupa Arabia
KSA Market
Bupa Arabia 2m
250k
Until the mid-1990s, insurance was banned in KSA
However, 100 companies were operating via overseas offices
Private Medical Insurance was not a priority, as all Saudis had access to free healthcare
In 1999, a Royal Decree mandated PMI for non-Saudis and created a governing body for health insurance, the Council of Cooperative Health Insurance (CCHI)
However, growth remained low
BUPA Middle East was incorporated in 1997 as a JV between Bupa Group and Nazer to serve the Saudi health insurance market
The company focused on bringing together the international health insurance and expertise of the Bupa Group with the knowledge of starting up new businesses in Saudi Arabia of the Nazer Group
2006

4. KSA Health Insurance Industry: Rush for Growth
Lives Covered
Saudi Health Insurance Market
Bupa Arabia
KSA Market
Bupa Arabia 2m
250k
In 2006, CCHI worked with the Ministry of Interior to link medical insurance to residential and work permits making it easier to enforce the mandate
Growth in the market accelerated
We focused on building the capabilities to deliver great products and a fantastic customer experience
This meant creating an operational structure, consistent with the Bupa way:
Distribution
Branding
Provider infrastructure
Customer service call center
IT infrastructure
Critically, it also meant the creation of a world-class team:
Recruiting
Development of people policies
Training
2006 8m
1.2m
2011

5. KSA Health Insurance Industry: Market Restructuring
Lives Covered
Saudi Health Insurance Market
Bupa Arabia
KSA Market
Bupa Arabia 2m
250k
In this period, the supply of healthcare facilities did not kept pace with the growth of health insurance. This is put upward pressure on medical costs
At the same time, the health insurance market underwent a “price war” with many competitors charging prices below medical costs
Growth in the market continues at a significant pace
We continued to focus on our core advantages: our healthcare credentials, our excellent customer service and our relationship with corporates throughout the Kingdom
Bupa Arabia launched our “7 pillar strategy” which focused on executional excellence across the business:
Expand Distribution
Establish Healthcare Leadership
Better Manage Medical Costs
Improve Branding
Improve Organisational Capability and Capacity
2006 8m
1.2m
2011
10m
2.5m
2014

6. Bupa Arabia “7 Pillar Strategy”
Enhance Our Proposition:
Expand Distribution. To develop a multi-channel strategy that ensures we are more easily accessible
Reinforce our Service Advantages. To maintain lead over competitors in customer service
Establish Healthcare Leadership. To establish new sources of differentiation, leveraging our healthcare focus
Increase Our Efficiency
Better Manage Medical Costs. To drive significant improvements to medical costs and customer service
Invest in Key Enablers
Improve Branding. To increase branding activity to support differentiation and growth.
Improve Organisational Capability and Capacity. To ensure we continue to have the right capability and capacity to succeed.
Increase Lobbying for More Effective Enforcement. To continue working with government to address the most pressing health issues in KSA
5. Improve Branding
7. Improve Organisational Capability and Capacity
Invest in Key Enablers
1. Expand Distribution
3. Begin to Establish Healthcare Leadership
Enhance Our Proposition
4. Better Manage Medical Costs
Increase Efficiency
6. Work with Government to Improve Healthcare in KSA
2. Reinforce Our Service Differentiation

7. KSA Health Insurance Industry: Innovation
Lives Covered
Saudi Health Insurance Market
Bupa Arabia
KSA Market
Bupa Arabia 2m
250k
Thanks to government intervention that prevented pricing health insurance below risk cost, the extreme price pressure in the private medical insurance market abated from the first quarter of 2013
Without the ability to drive very low pricing, many of the industry’s smaller players (who are not differentiated) have begun to struggle
We are focused on moving from “Health Insurer” to “Healthcare Partner” through innovativion:
Up Your Service Passion: step change in service mindset and excellence
Breakthrough in healthcare services
Quality management systems
An improved hospital experience
We believe that having great talent and an “amazing culture” are critical to our success. We strive to:
Be leaders in all we do
Create an innovative and caring culture
Be loved by customers
Have amazing talent
Consistently act according to our values
2006 8m
1.2m
2011
10m
2.5m
2014
10m
2.7m
Q1 2015

8. Bupa Arabia: Innovative Strategy
Bupa Arabia is the greatest healthcare company in the Arab world.  It is designed to deliver on its purpose. When it touches you, whether you are an employee, a customer or a community member, you live a longer, healthier, happier life.  We have written history.
People love working at Bupa because of our amazing culture
A healthcare partner to millions more people
Extraordinary business performance
Health insurance that leads the market in unlocking access to high- quality healthcare
Provision (e.g., clinics and hospitals) sufficient to shift the industry to a patient-centric, outcomes-focussed paradigm
Partnerships to tackle the most pressing healthcare needs
We are leaders in all we do
We have an innovative and caring culture
We are loved by customers
We have amazing talent
We consistently act according to our values
10 million total customers
10 billion riyals in revenue

9. KSA Health Insurance Industry: The Future
Regulatory change (or more firmly enforcing existing regulations) will lead to dramatic improvements in the quality of care in Saudi Arabia
This should include:
Increasing provision (hospitals and clinics) capacity by allowing foreign and health insurer ownership of provision
Developing Public / Private Partnerships in provision, specifically outpatient services, to bring private sector expertise and experience
Better enforcing the existing mandate for private health insurance to ensure there is no improper use of the public system
Expanding the health insurance mandate to a broader spectrum of the Saudi population, allowing them to access the quality of private provision and allowing the government to increasingly focus on regulation, not healthcare delivery

10. Bupa Arabia Across the Phases
Innovation
Market Restructuring
Rush for Growth
Pre-Enforcement 10

11. Thank You 11