The market opportunity sure sounds attractive: 1.5 million Haj pilgrims each year, and more than five million Umrah pilgrims. Many of them are a long way from home, many of them in the country for the first time. The insurance sector has finally cranked into gear and created a product specifically suited for Saudi’s annual influx.
Tawuniya, Saudi Arabia’s first insurance company, says it will now provide insurance coverage to the millions of foreign pilgrims who come to the Kingdom each year. Arab News says it has signed agreements with Bahrain Kuwait Insurance Company in Manama and Al-Ain Ahlia Insurance Company in the UAE to market the product titled Manasik. The $30, one-month fee will provide cover up to $6,666 in medical bills.
While the move is to be commended, it is frightening that the Saudi authorities have taken so long to allow the private sector to find a solution to a consumer problem. Just as worrying, the go-ahead was given four years ago. According to 2005 figures (unfortunately the most recent) hospitals in Makkah and other holy sites provided health care to more than 11,000 pilgrims. Health centers in the holy cities treated 812,000 people.
No doubt the country’s insurance sector will be rubbing its hands. It is hoped the authorities now realize the role an open business sector can have in helping solve social issues.
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