TLPRESS.
You must always evolve and understand what your customers want, anticipating changes in the industry and customer behavior. Being at the forefront of customer needs is essential, whether it's through business models, technology, or convenience
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Unveiling TETCO's Pioneering Role in Elevating Saudi Arabia's Education System Through Advanced Digital Infrastructure, Teacher Training, and Enhanced Student Learning Experiences
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AN Exclusive Conversation with Abdullah AlTamimi, CEO of TETCO
The health insurance sector in Saudi Arabia is experiencing significant growth due to substantial investments in the health transformation program led by the Ministry of Health. In 2023, gross written premiums in Saudi insurance firms rose by 22 percent to SR48.96 billion, with health insurance accounting for 61 percent. This growth is driven by mandatory medical coverage for private sector employees, increasing beneficiaries to 11.5 million by the end of 2022.
Bupa Saudi Arabia exemplifies sustained growth, innovation, and governance in this sector. According to Bupa Arabia’s second quarter 2023 report, medical inflation and the increasing number of insured individuals are major factors driving up insurance premiums, including rising costs of medical goods and services. To address these issues, an independent regulatory body was established to manage medical inflation, ensuring fair practices and cost controls in the private insurance sector.
The sector aims to expand coverage to 25 million beneficiaries by 2030, potentially contributing SR61 billion to the economy and 2 percent to the GDP. The National Platform for Health and Insurance Exchange Services aims to improve service quality, streamline claims, and facilitate electronic integration between insurers and healthcare providers.
Bupa Arabia maintained its position as the most valuable insurance company in the Middle East for the second consecutive year. It was also ranked among the 10 most powerful brands in Saudi Arabia by Kantar BrandZ and 15th in the list of the most valuable brands across all sectors of the Saudi market.
Throughout 2023, the Saudi Arabian insurance industry experienced a 25% increase in gross written premiums, influenced by factors such as regulations, enforcement, technology advancements, giga projects, and the increased participation of women in the workforce. Despite being a single-line insurer, Bupa Arabia maintained a robust 28% market share within the total insurance sector.
Tal Nazer, Board Member and Chef Executuve Officer of Bupa Arabia since 2008, has been instrumental in leading the company to higher standards. In this exclusive interview we explore the challenges and opportunities facing the health insurance sector, his views on innovation and governance, and his perspective on leadership in today's world.
Moderator: Since the launch of Vision 2030 in 2016, Saudi Arabia has embarked on a remarkable story of transformation. This ambitious blueprint, deeply rooted in the country's rich cultural heritage and strategic advantages, is steering the nation towards a more diversified and innovative economy.Vision 2030 has sparked comprehensive change, ushering in an era of openness to the world..What are the biggest challenges and opportunities that lie ahead in order to achieve the Kingdom’s vision 2030goals?
Tal Nazer: I believe this is an extraordinary period for everyone in Saudi Arabia. Vision 2030 is unlocking the nation’s potential and transforming the economy. While there are numerous specifics, the primary economic focus is on diversifying away from oil and harnessing the country’s full potential by developing the necessary systems and infrastructure. This transformation is evident in various sectors, such as tourism, where we are moving from a minimal presence to establishing robust infrastructure, easing visa processes, and making significant investments. This pattern is visible across all sectors, whether they are newly emerging or existing ones that have not yet reached their full potential.
Most of the Saudi Vision 2030 programs and projects have been progressing well and some are ahead of their set KPIs. The challenges are many and I believe they weren’t hidden. Most of the Vision2030 projects are ‘new to the world’ and when you walk into unchartered territories, you know you will face new challenges as you advance. The time pressure and human resources scarcity, especially high caliber Saudis, are few and obviously the funding and investment requirements. I believe the various programs of the Vision2030 bring great opportunities for the private sector to step up and play their role, each in their respective sectors, to capitalize on the future growth of the economy and help realize the intended objective of increasing the participation of the private sector.
Moderator: And if we focus on Bupa, the journey began in 1997 when the British United Provident Association as a group united forces to create the first health insurance company. Now it's the leading one in Saudi Arabia. What have been the core principles that have made the company such an ongoing success through the years?
Tal Nazer: The answer is quite straightforward. Since day one, we have focused on two main areas: serving our customers better than anyone else and attracting the best talent in the industry. These principles have shaped our culture and driven our growth. As long as we continue to prioritize exceptional customer service and support it with the right talent, we will maintain our success. It’s crucial not to lose sight of these focuses.
Every economic shock leaves a legacy. The Covid-19 pandemic is no different. It has roiled financial markets, dampened global growth, upended traditional business models and threatened the future of globalization. The scars will be felt for generations. However, the chaos has also given birth to an uneasy optimism about the future. Lessons learned from the pandemic: How has Bupa Arabia made it through the pandemic by being fast, and thinking digital?
Tal Nazer: The greatest outcome of tough times is they leave you with one or no options and you better be ready. Bupa Arabia invested considerably, in the hundreds of millions of Riyals, over the 3 years before Covid-19 to uplift its technological infrastructure. That came in handy when lock-down was enforced and we started offering our members online consultations from day one and we complemented that with all relevant support services such as medication delivery and home-based lab tests. In normal times, we would probably have done fewer pilot tests then a small-scale launch and then scale up gradually, but with Covid-19, we just launched and fixed or improved on the go.
Moderator: Since inception you have strive for benchmark quality, a customer-centric approach, robust engineering, customer-wide loyalty. Regarding your relation with the customer, what sets BUPA apart from other insurance companies?
Tal Nazer: You must always evolve and understand what your customers want, anticipating changes in the industry and customer behavior. Being at the forefront of customer needs is essential, whether it's through business models, technology, or convenience. If a business doesn't adapt to the evolving expectations of customers, what works today might not work tomorrow. Therefore, staying ahead is crucial.
Moderator: True. Under the leadership of Minister Al-Jalajel, SA has embarked on a significant transformation journey. The health care sector in Saudi Arabia receives an average of 16.5% of the government’s annual budget, reflecting its importance to socio-economic development.. PPPs are targeted to strengthen specific areas of infrastructure while investment in R&D is set to increase even more. What are the main challenges and opportunities that you foresee in the health sector in the next years and how is BUPA positioned to maintain its leadership?
Tal Nazer: Most healthcare and health insurance challenges are common and universal to a varying degree. Ultimately, we are trying to solve for the optimum cost that yields the highest healthcare outcomes. The rising cost of healthcare is a key concern not only for insurance companies but also for public health providers. Tackling this will require synchronized and coordinated efforts between various players in the ecosystem and the regulatory bodies and frameworks.
Bupa Arabia has been the flag bearer when it comes to introducing healthcare services to insured members including chronic care management, maternity and childcare care, home healthcare and labs. Now that insurance companies are no longer restricted from the direct provision of health services, Bupa Arabia has created a wholly owned subsidiary, under the name of Bupa CareConnect, to develop population health management programs and help improve the lives of our customers and their family members while significantly improving patients’ experiences.
In 2023, the Saudi insurance sector experienced remarkable expansion in its Net Profits attributed by factors such as refined regulatory landscape, heightened operational efficacies among insurance companies, and an increased awareness & enforcement of motor insurance and of course, better investment income benefiting from the high interest rate environment. The Saudi insurance sector achieved a noteworthy milestone by registering Net Profits before zakat and tax of SAR3.9 billion in 2023, showcasing an extraordinary surge of 5 folds in comparison to 2022.
Moderator: And given the evolving regulatory landscape in Saudi Arabia, how have recent legislative changes impacted BUPA in its operations and compliance?
Tal Nazer: Usually, the impact has been positive. One major development is the establishment of the insurance authority, a new regulatory body aimed at fostering industry growth and sustainability. This is a significant advantage for both the industry and BUPA. Additionally, regulatory changes within the healthcare system and the Ministry of Health now permit investments in areas previously restricted, such as healthcare services, primary care, and digital health. This opens up substantial opportunities for both local and global investors to enhance service delivery. Consequently, we can now invest in primary care and develop a digital healthcare system, which was not possible before. This presents a tremendous opportunity for any investor looking to capitalize on the regulatory shifts in Saudi Arabia.
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Moderator: Radical models are emerging from different parts of the world and they're transforming how business is done. Integrating technologies such as the Internet of Things (IoT), cloud computing, artificial intelligence (AI), and machine learning to improve operations to ensure optimised performance. .How does Bupa approach Innovation? In what ways for instance is Bupa Arabia utilizing data analytics and artificial intelligence to enhance predictive capabilities and personalize health insurance products for consumers?"
Tal Nazer: We are actively incorporating all of these technologies. As mentioned earlier, today's customers expect to be healthier and receive healthcare services promptly, which can only be achieved through a digital experience. This includes telemedicine, online doctor appointments, and using AI to understand healthcare needs. To meet these expectations, BUPA has been investing heavily in building the necessary healthcare infrastructure over the past few years and will continue to do so. We've even launched a new company focused on digital healthcare to stay at the forefront of these advancements.
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Tal Nazer: Often innovation is linked and referenced to tech companies, and we know Bupa Arabia isn’t a tech company. To us, innovation is a customer need delivered well. Tech could enhance the use or experience but innovation itself is just a simple need that you need to deliver well. Back in 2014, Bupa Arabia was first to introduce medication refill leveraging highly accessible retail pharmacies to serve a customer need, today it’s a must have service for every insurance company in Saudi Arabia. In 2016, Bupa Arabia was first to move most of its customer service team members from back offices to the hospitals because that was a customer need. With advanced technologies supported with AI, sky is the limit and we are geared up to benefit from that as we have developed sensitive ears to listen to our customers’ needs.
For example, as you know AI relies on large datasets and the results depend on the quality of the data. If we provide incomplete or biased data, this can lead to flawed decisions thus affecting the customers directly. To mitigate this, data integrity must be ensured and a monitoring and evaluation process must be in place to take corrective measures when necessary.
The Saudi insurance sector utilized AI in over 50% of customer service dealings in 2023. Recently at Leap 2024, we have seen the outcome of hard work and positive planning that led to more than 90% of organizations implementing AI strategies
Moderator Health and well-being have become central themes in the corporate world. How does Bupa Arabia support businesses in Saudi Arabia in enhancing the health and well-being of their employees, and what role does Bupa play in promoting a healthier workforce?
Tal Nazer: No doubt this is true, health insurance represents the largest insurance line in the Saudi insurance market, with a share of ~60% of the total insurance premiums in the market.
We at Bupa Arabia actually start with our own employees through our employee program “Smile”. We are committed to ensuring that our team members are not only well-equipped to safeguard their health and safety but are also empowered to deliver the compassionate, high-quality care that Bupa Arabia is known for. Understanding the direct correlation between employee wellness and exceptional service delivery, Bupa Arabia offers its employees, and family members of our customers, a suite of well-being services delivered in a hybrid format of on-premises, remotely and digitally through our Bupa App and other online services. These services include basic health checks such as blood analysis, vision and audio tests, blood pressure and Body Mass Index. Then, we target certain groups with
The insurance industry is becoming increasingly digital. How is Bupa leveraging digital technologies and data analytics to personalize insurance and healthcare services for its customers while ensuring data security and privacy?
Tal Nazer: The ecosystem of health insurance is fragmented, and they need to all move in the same direction in order to improve customer experience. I can’t be a super digital insurer if my customer goes to a hospital with limited digital capabilities, for example. This puts pressure on us to level up our stakeholders as we level up our own capabilities. Being a regulated company, data security and privacy is of the utmost importance and we have clear governance framework and we get audited externally. Of course, the higher the level of security and privacy, the higher the investment you need to put into your tech infrastructure.
Moderator: Tebtom, beyond traditional medical insurance by offering healthcare services aimed at enhancing your overall well-being. With a team of dedicated Bupa doctors How has Tebtom's integration of digitized services and 24/7 access to Bupa doctors impacted customer satisfaction and health outcomes compared to traditional healthcare coverage?
Tal Nazer: The key difference is its proactive approach. We serve over 2 million people with healthcare services beyond just paying for their treatments. It's focused on population health and wellness. If we can make our customers healthier and provide more convenience, everyone benefits. When our customers are happy, we are happy.
Moderator: And talking about health care accessibility, how is BUPA Arabia working to improve the health care accessibility for the underserved populations?
Tal Nazer: We innovate by offering different products at various price points to reach as broad a population as possible. When we can't physically reach certain areas, we leverage technology to provide products and services, ensuring that more people have access to healthcare.
Moderator: In 2008, Bupa was listed on the Saudi stock exchange as the most successful IPO ever for an insurance company in Saudi Arabia, being oversubscribed by more than 900 percent. In an era of increased shareholder and public scrutiny, corporate boards must lead with more efficiency, expediency, and transparency than ever before. How important is it for Bupa to maintain high levels of corporate governance?
Tal Nazer: The regulatory framework in Saudi Arabia for publicly listed and insurance companies is exceptionally robust. From the start, both BUPA and the regulators have maintained high standards. As a result, BUPA Arabia likely has one of the highest percentages of foreign shareholding in the country. This reflects the trust in our governance, the transparency of our operations, and the strength of the regulatory system in Saudi Arabia that we adhere to.
Moderator: Of course. And what do you see BUPA Arabia in five years' time? What are the main challenges and opportunities you see?
Tal Nazer: I believe the healthcare system in Saudi Arabia is undergoing significant changes that will create numerous opportunities for industry players. The challenge will be to align our strategy to capitalize on these regulatory changes. I am personally very optimistic about the future of both the healthcare and insurance industries in Saudi Arabia.
Moderator: Yes. The world now is moving towards increased adoption of environmental, social, and governance across all levels. Insurance is no exception. How do you, how does BUPA approach ESG?
Tal Nazer: In alignment with Saudi Arabia’s Vision 2030, our nation has embarked on an ambitious journey towards sustainable development. At Bupa Arabia, we are inspired by this vision; we embrace these transformative efforts, ensuring that our strategies and operations contribute to the goals of this national agenda. In 2023, Bupa Arabia has developed a comprehensive sustainability framework aimed at solidifying our dedication to integrating sustainable practices across all dimensions of our business.
This framework is not just a blueprint for reducing our environmental footprint but also a commitment to social responsibility, ensuring that our growth does not come at the expense of the ethical standards we uphold and the welfare of the communities we serve. The framework has been instrumental in guiding our operations, customer service, and overall corporate strategy in a more sustainable and responsible manner, aligning with the ambitious goals of Saudi Arabia’s Vision 2030.
In 2023, the company initiated an environmental & wellness campaign; Bupa Marathon and Padel Tournament. These campaigns are a direct action towards contributing to the SGI which aims to plant trees to combat desertification and climate change. Notably, the initiative has led to the planting of over 5,000 trees in honor of the 1,500 Tal Nazers, aiming to offset approximately 50 tons of CO2 emissions in 2023.
Moderator: Looking at the numbers. Bupa Saudi Arabia has touched over 30 million lives, provided home clinic services to over 6 million individuals, The network includes over 1,400 healthcare providers​ What does it take to manage a company of this magnitude? What are the day-to-day challenges of managing a company of this size?
Tal Nazer: I think that managing a company of this magnitude requires a clear strategy, effective execution of that strategy, and creating an environment where employees can thrive and deliver. This interconnected approach ensures we provide the right products and experiences to our customers. The challenges we face in Saudi Arabia are similar to those of large companies globally. However, we are fortunate that the direction of the economy is very promising, and we aim to leverage that.
Moderator: How would you describe leadership? What makes a good leader in your opinion?
