Magazine 9

COOPERATIVE
HEALTH INSURANCE
April 2010, Issue 9
Insurance
policies: same
component,
different
packages
Nasser Al-Subaie
Commitment to
insurance standards
and values is
an essential
requirement for all
insurance parties
Private Health Sector offers potential

investment opportunities
A huge gap between supply and demand
Editor-in-Chief:
Dr. Abdullah Bin Ibrahim Al-Sharif
Secretary General of the Council of Cooperative Health
Insurance
asharif@cchi.gov.sa
Asst.Editor In Chief
Mohammed S. Al Hussain
Asst. Gen.Secretary of Admin & Finance
of the Council of Cooperative Health Insurance
Consulting Committee:
Dr. Mansour Bin Nasser Al-Hawasi
(MOH) Deputy for Executive Affairs
Member of the Council of Cooperative Health Insurance
Dr. Mousaaid Bin Mohammad Al-Salman
Dean of the Faculty of Medicine, King Saud University
Mr. Sami Bin Abdullah Al-Moubarak
Representative of the Ministry of Labor
The General Secretariat of the Council of Cooperative
Health Insurance
PO Box 94764 Riyadh 11614
Phone: 920001177
Fax: 014870071
www.cchi.gov.sa
Published on behalf of:
The Council of Cooperative Health Insurance
Publisher:
CEO:
Rabih El-Amine
rabiha@alefinternational.com
Editor-in-Chief:

Mustafa Shehab
mustafas@alefinternational.com
Associate Editor:
Amira Hamadeh
Editors:
Said Al-Hasanieh

Faisal Al-Shaye

Syed Noori Mohammed

Yasmeen Hinnawi

Group Editor (English) K. Krishnakumar
Senior Graphic Designer: Hussain Mohamed Al-Bakri
Editors note
The cooperative health insurance sector develops each day, as do the related issues
and stories that require discussion. We strive to keep our readers informed of all these
changes and we continue our support of this vital sector, which is still new in terms of
its legal framework.
The Council of Cooperative Health Insurance magazine and the Council of
Cooperative Health Insurance, which publishes the magazine, strongly believe that it is
our duty to put before our readers a clear picture of all the issues that concern all parties
involved in this sector, including the beneficiaries of health insurance services.
In this issue, our cover story focuses on the inability of the private health sector to meet
the growing needs of millions of insurance beneficiaries in the Kingdom. We present
to our readers the exact number of hospitals and health institutions that are urgently
needed. Because the insurance sector is one of the largest in terms of size, activity, and
potential, our cover story also highlights the outstanding investment potential of the
health insurance sector.
In our new parallel direction section, we discuss the discrepancies between insurance
policies issued by insurance companies operating in the Kingdom, and their consistency
with the consolidated document issued by the Council of Cooperative Health Insurance.
We also discuss the characteristics of various insurance policies in order to clarify the
situation for usersof health insurance services.
We also meet with Nasser Bin Sultan Al-Subaie, a member at the Council of
Cooperative Health Insurance and the deputy chair of Mouwasat Medical Services
Company, who stresses the need for a set of controls that insurance companies and
health services providers must commit to in order to serve the interests of all parties.
In this new issue of our magazine, we furthermore introduce Saudi Arabian
Cooperative Insurance Co (SAICO), which will be an important component of the
health insurance sector in the Kingdom.
Also presented are Dr. Soliman Fakeeh Hospitals Corporate Social Responsibility
(CSR) Report, the first of its kind in the region, and a number of other financial reports
and economic analysis covering the growth of the insurance market in Saudi Arabia.
Finally, this issue and topics related to insurance and of interest to our readers.
Instanbul -- Constantinople or Byzantium -- is our choice location for the Tourism
section in this issue.
As always, we hope you find the information and topics presented in the magazine
useful and insightful. We look forward to receiving your comments and suggestions.
Best regards,
Editor- in- Chief
Dr. Abdullah bin Ibrahim Al-Sharif
Distribution:
P.O. Box: 301292 Riyadh 11372, Phone: 0096614623632
E-mail: info@alefinternational.com
The reproduction or reprinting of any part of this magazine must have
the express permission of the publisher, who reserves the right to
initiate legal action against any violation.
COOPERATIVE HEALTH INSURANCE
News
Company Report
14
36
Finance & Investment

Tawuniya Captures 43 Percent of Total
Premiums
The financial results of Saudi insurance
companies in 2009
Health Ministry aims to link

insurance companies, service
providers with CCHI
Last year was a tough year for many

economies around the round. The world
financial crisis impact overshadowed the
regions capital markets because of their
link to the global markets
Saudi Arabian Cooperative Insurance

Company (SAICO)
Regulate traffic and increase

productivity
A new system to detect rates of traffic
jams achieves momentum
One of the oldest established insurance

firms in the Middle East, SAICO has
been fully licensed by SAMA to offer
insurance in Saudi Arabia.
Snippet
18
Insurers face a bill of around

500 million euros ($682 million)
following severe storms in parts of
western France, the head of French
reinsurer Scor told BFM radio.
Hot Topic
20
Insurance policies: same component,

different packages
An insurance policy is a legally
binding contract between an
insurance company and the
policyholder, who also is often the
person insured
Social Responsibility
24
Lifestyle
42
Dr. Soliman Fakeeh Hospital unveils its

healthcare CSR report
Approved by Global Reporting Initiative (GRI)
Report And Analysis
44
Around The World
Technology
Private Health Sector Offers Potential

investment opportunities
A huge gap between supply and

demand in the Kingdom is an
excellent chance for local and
international companies to satisfy
a growing populations desire for
hospitals
28
Interview
32
A universal system
in Britain efficiently
covers an entire
population, but
critics say the
program fails
to adequately
accommodate
complex illnesses such
as cancer
42
Nasser Al-Subaie Commitment to

insurance standards and values is an essential requirement for the continuation
and success of all insurance parties
Travel & Tourism
46
British Healthcare: Envied,

Criticized, But Free for All
The Rolls-Royce Ghost offers an

unmatched combination of strength
and performance
Create Positive Energy With Feng Shui

Transform your home and life with
an ancient Chinese method of room
organization
Cover Story
40
Tech World
50
Two Opinions
56
A city bringing cultures together

TheGrand BazaarinIstanbulis one of
the largest and oldest covered markets
in the world. It receives around half a
million tourists every year
Companies around the world that interact

directly with the public often have their own
customer service departments, which help
such companies maintain close relationships
with customers.
News
Health Ministry aims to link insurance

companies, service providers with CCHI
The Secretariat of the Saudi Council
of Cooperative Health Insurance
Council (CCHI) recently held its 79th
meeting in Riyadh. The meeting,
which was headed by Dr. Abdullah
Al-Rabiah, the Minister of Health
and Chairman of CCHI, discussed the
latest developments in the cooperative
health insurance industry.
The Secretary-General Dr. Abdullah
Al Sharif viewed a detailed report
on the performance of the council
and the recent developments in the
health insurance market. The Council
members then discussed the main
topics on their agenda, including a
Customer Service Center report and
an electronic connectivity report. The
customer service center receives and
responds tothe publics queries about
the health insurance system and its
executive list.
The Minister of Health has
recommended the use of modern
technologies to effectively manage
the health insurance market, Al
Sharif said. Therefore, we need to
electronically link health insurance

companies and health service
providers with the Council. We
believe this linkage will benefit both
patients and citizens, increase the
efficiency of our services and improve
the level of supervision. This will be
achieved by applying standardized
methods for the exchange of health
information, including the use of
international medical coding.
Jumada al-awwal 1431 | April 2010
The new regulations will ensure professional

independence for doctors
Dr. Abdullah Al Sharif, the Secretary
General of the Council of Cooperative
Health Insurance, announced that
all doctors who are working with
claims management companies would
have full professional independence,
according to the new system that was
adopted by the Minister of Health
recently.
The new system gives doctors the
freedom to express their medical
opinions and ask for medical
requirements, but they will have no right
in deciding the medical treatment.
Al Sharif disclosed that the new
regulations would commit service
providers, beneficiaries and insurance
companies to provide doctors working

in claims management companies
with all the information they need
and put at their disposal all the
necessary documents to carry out their
supervision duties in accordance with
Article (34).
In accordance with Councils rules,
claims management companies cannot
sell or market health insurance policies.
Claims
management
companies
should examine and study claims and
pay compensation to the policy holder
through the insurance company and
the service provider, in accordance
with the rules of cooperative health
insurance system, Al Sharif said.
Mortgage financiers must cover risks

related to financing real estate projects
CCHI adapts amended list for fees collection

The Secretary General of the Council
of Cooperative Health Insurance,
Dr. Abdullah bin Ibrahim Al-Sharif,
recently approved the amended list for
fees collection in accordance with the
councils policy and regulations.
The council introduced a fees
collection system three years ago, in
order to supervise the implementation
of cooperative health insurance. The
system was approved during the Board
of Directors 57th meeting held on
01/07/1428 (07/15/2007).
The new amendments to the fees
collection system were approved
during the Board of Directors74th
meeting held on Sunday 07/06/1430
Secretary-General of the CCHI:
and the Councils 72nd meeting held

on 04.02.1430.
The amendments include changes
in some important articles, including
the eligibility of the Council to
suspend or cancel the qualifications
of any insurance company that fails
to pay its fees, three months after
filing the claim by the Council. The
list will be effective on 23/02/1431
corresponding to 2/7/2010. A copy of
the new amendments is available on
the councils website.
Informed sources recently indicated that

the Saudi mortgage system, which will
be applied soon, will include an article
requesting mortgage financiers (banks,
finance companies and mortgage refinance companies) to cover risks related
to financing real estate projects through
cooperative insurance companies.
According to the mortgage law,
mortgage financiers must insure their
real estate clients before providing
them with funding. Experts believe
that the adoption of the mortgage law
in Saudi Arabia will open the door for
new and advanced developments in the
insurance market.
The law will support the integration
and the coordination betweenmortgage
financiers and insurance companies.
According to the newspaper, Al
Iqtisadiya, insurance companies that
seek to cover mortgage financiers must
obtain a license from the Saudi Arabian
Monetary Agency SAMA in order to
cover all risks related to fundingreal

estate projects in accordance with the
Cooperative Insurance Companies
Control system.
More than 31 cooperative insurance
companies operating in Saudi Arabia are
expected to benefit from the mortgage
law, of which 28 companies are trading
their shares in the financial market,
and three more companies are undersubtraction. The Saudi insurance market
is worth SR3.6 billion (US$1.7
billion) and is expected to rise to
SR30 billion during the next
ten years, according to a
report published by Ernst
& Young.
Insurance
observers
predict that the proportion of
property insurance in the GCC countries
will not to exceed five percent. In Saudi
Arabia in particular, the percentage of
property insurance does not exceed one
percent, compared to 98 percent in the
United States, which means that there

are a large number of properties inGCC
region that are not covered by property
insurance or are unprotected as a result
of inappropriate insurance policies.
News
Standard & Poor: Saudi Arabias insurance

boom began in 2009
Malath Insurance organizes

engineering insurance forum
Standard & Poors, one of the major

international credit rating agencies,
confirmed recently that the insurance
sector in Saudi Arabia began to
flourish in 2009, noting that Saudi
insurance companies enjoy significant
opportunities for growth.
The agency noted that licensed
insurers began to list their shares in
the Saudi stock market only in the last
two years. It said that the insurance
sector was protected from the negative
results of the financial crisis because
the funding and capital structures were
local, and the majority of the insurance
companies were still new. Furthermore,
the report concluded, the supervision of
the market by SAMA, which is known
for its strict regulations and laws, also
helped in mitigating the impact of the
crisis on insurance companies.
The Malath Insurance and Reinsurance

Company recently organized an
engineering insurance forum that hosted
a large number of leading insurance
experts. The attendees agreed on the
need to cover construction projects under
contractors all-risk insurance, to ensure
that these projects will be implemented
on time as well as cover the possible
risks and delays.
Contractors all-risk insurance provides
comprehensive
protection
against
damage or delays in implementing
private contracting projects. It also
covers civil engineering, equipments,
vehicles, construction machinery as well
as third-party liability in case of property
damage or physical injuries that are
associated with the implementation of
the construction projects.
Meshal Al-Shaya, the Regional Director
for Central Region, Malath Insurance
and Reinsurance Company noted that
the engineering insurance forum was
attended by a group of engineers, heads
of departments in governmental bodies,
companies and institutions, as well as
consultancy firms. The forum sheds light
on the engineering insurance, which is
witnessing a remarkable development
in its insurance premiums, he said.
According to SAMA, the engineering
insurance premiums achieved a 42
percent increase in 2008, rising from SR
480 million in 2007 to SR 682 million
in 2008.
Al-Shaya
added
that
engineering
insurance
accounts for six percent of
the size of the insurance
market premiums, which
total SR 11 billion. This
percentage is considerably
low compared to the volume
The insurance sector is one of most

important components of the Saudi
economy, and it plays a vital role
in stimulating the trade movement.
Therefore, the growth in the insurance

is directly correlated with economic,
financial and commercial growth.
Ernst & Young: Saudi Arabia has

the worlds largest Takaful markets
Ernst & Young recently said that
global Takaful industry is well on a
course toexceed US$8.8 billion in
contributions in 2010. It said that
contribution grew by 29 percent in
2008, to reach US$5.3 billion in 2009.
Takaful refers to Shariah-compliant
cooperative insurance.
According to the third edition of
Ernst & Youngs World Takaful Report,
which was unveiled at the Fifth Annual
World Takaful Conference in Dubai,
Saudi Arabia and Malaysia are the top
two Takaful markets in the world, with
Saudi Arabias contributions totaling
US$2.9 billion in 2008, and Malaysia
with US$900 million. Sudan is the most
significant market outside of the GCC
and Southeast Asia, with contributions
totaling US$280 million in 2008.
In the GCC, Ernst & Young expects

some consolidations across several
markets over the next three years,
leading to the creation of financially
stronger market leaders.
The report revealed that global
compound annual growth rate for
Takaful has been 39 percent; the Levant
region and Africa grew at 18 percent,
the Indian Subcontinent at 135 percent,
Southeast Asia at 28 percent and the
GCC at 45 percent. The UAE was the
fastest growing Takaful market in the
world, with a compound annual growth

rate of 135 percent, while Indonesia
rose quickest in Southeast Asia, at 35
percent.
It noted that the compulsory medical
insurance requirements in Saudi Arabia
have contributed to growth in family
and medical Takaful, which, together,
are estimated to bring in 49 percent
of gross contributions in the MENA
region. Family Takaful is estimated to
provide only 5 percent of these total
contributions.
of investments and growth in the

construction sector in Saudi Arabia.
Engineering insurance is very important
now as it helps in mitigating any possible
damages in contraction projects.
Sami Al-Ali, Executive Vice President
for Technical Affairs, Malath Insurance
and Reinsurance Company, noted that
the Saudi government in collaboration
with insurance companies is striving to
develop the insurance sector and enable
it to exercise a significant role in the
national economy despite the difficulties
facing this sector.
Many contractors are not fully aware of
the importance of engineering insurance,
mainly because there are a few companies
that offer this type of insurance, he
said. Because of the low demand, the
price of engineering insurance policies
for contractors and consultancy firms is
usually high. I must note though, that any
governmental construction projects that
worth more than SR5 million must apply
for contractors all-risk insurance.
Al-Ali called upon the public and private
entities working in the insurance industry
to raise the awareness among engineering
offices and construction companies of
the importance of engineering insurance,
which is required by the government
to ensure the implementation of these
projects.
Al Sagr Company
for Cooperative
Insurance
reduces losses
Al Sagr Company for Cooperative
Insurance held its Annual General
Assembly meeting at Sheraton Hotel
Dammam on March 22, 2010.
The Board of Directors ratified the
balance sheet and calculated the
profit and loss for the financial year
ended 31/12/2009 for shareholders
alone, without counting the
operations, as the company is still
waiting or SAMAs approval on its
insurance portfolio.
The Board of Directors Chairman,
Al Sagr Company for Cooperative
Insurance, Abdulrahman Ali al-Turki
said that the company reduced its
expenses, allocated some amounts
for Zakat and was able to move to
profitability.
News
Allianz SF issues 10 million new shares

Saudi Fransi Cooperative Insurance
Company (Allianz Saudi Fransi)
announced that it would issue 10
million new shares in rights issue. The
decision was made at an extraordinary
general meeting at the companys
headquarters in Riyadh. The rights
issue will represent an increase of 100
percent in shares, from 10 million to 20
million. The Capital Market Authority
has approved the period of distribution
as per its regulations.
The company Board of Directors has
approved an increase of its existing
SR100 Million Capital through a
Rights issue with a total offering size
amounting to SR125 Million limited to
shareholders registered at the end of the
trading day of the extraordinary general
meeting, with a price of SR10 and a
premium of SR2.50 per share.
The proceeds from this important

increase in the companys capital
will enable the company to drive its
ambitious development plans, expand
its base and launch new products, while
maintaining a margin of solvency and
statutory deposits.
Al-Rajhi Cooperative Insurance Co trains and

recruits 30 Saudi nationals
Al-Rajhi
Cooperative
Insurance
Company recently announced that it has
an ambitious plan to train and recruit 30
Saudi nationals to work in the field of
cooperative insurance.
Abdulaziz bin Mohammed Al Sudais,
the CEO of Al-Rajhi Cooperative
Insurance Company, said that the
company began to implement this plan
since its inception.
He noted that the selection of
trainees was done in collaboration
with Zedni Training Center. The threemonth training program started on 12
December 2009 and covered the areas of
insurance, Takaful principles, customer
service, communication skills and the
10
International Computer Driving License

(ICDL). The successful candidates were
employed in the company.
Al-Rajhi Cooperative Insurance Co
is partly owned by Al Rajhi Bank, and
has an authorized capital of SR200

Million. It provides the best insurance
services and Takaful solutions symbiotic
to the needs of individuals, families and
companies in Saudi Arabia.
CCHI signs agreement with Creativity

Routes Center
The Secretariat of the Council of
Cooperative
Health
Insurance
(CCHI) recently signed an agreement
with Creativity Routes Center, the
representatives of Gulf Insurance Institute
(Bahrain) to provide training courses on
the cooperative health insurance system.
The courses are accredited by the British
Institute for Insurance, which applies
the highest international standards in
insurance industry.
The agreement was signed by the
Secretary-General of Administrative and
Financial Affairs, Mr. Mohamed Bin
Suleiman Al Hussein and Mr. Hussein
Bin Ali Al Shaban, the Director General
of Creativity Routes Center.
Al Hussein says the agreement
represents a continuation to the activities
and training programs that had been
organized by CCHI since its inception.
The Council strives to develop the
health insurance sector and qualify its
cadres, he said. These programs are
the first of their kind in the region as
they adopt the principles of the British
Institute for Insurance and international

health disciplines.
The training courses will benefit all
existing and new employees working
in health insurance companies, claims
management companies, medical service
providers and their employers, he said.
The courses will raise the employees
qualifications and skills enabling them
to offer their services in an orderly and
sound manner.
Islamic insurance conference ends on

successful note
Islamic and Arab insurance experts
recently confirmed the success of the
Islamic insurance in meeting the needs
of a large sector of citizens who do not
deal with non- Islamic commercial
insurance companies. They agreed
that Islamic insurance has become an
effective contributor to the financial
services sector among Arab countries.
Their comments came during the
Cooperative insurance conference, held
in Amman, Jordan, and attended by legal
scholars, academics and specialists in
the field of cooperative insurance.
The attendees noted that the Islamic
insurance industry is attracting more
investment and that more and more
Islamic insurance and Takaful companies
are opening to meet the large demand

for this type of insurance -- locally,
regionally and internationally.
They also discussed a number of
working papers on the professional and
economic status in Arab countries of
the Islamic insurance industry, which
represent a fundamental pillar of the
Islamic economic system.
The three-day conference was held at
the University of Jordan in cooperation
with the Islamic Fiqh Academy in
Jeddah, the Charter of theIslamic
Educational,Scientific and Cultural
Organization(ISESCO),and the Islamic
Institute for Research and Training, an
offshoot of the Islamic Development
Bank.
11
CCHI members meet with insurance parties

A group of Council of Cooperative
Health Insurance members recently met
with insurance companies and claims
management companies at the Council
Secretariat headquarter in Riyadh.
The meeting discussed the relationship
between insurance companies, service
providers and beneficiaries and
addressed the issues and challenges
facing the insurance industry in the
Kingdom of Saudi Arabia.
The meeting was attended by Dr.
Mansour bin Nasser al-Hawasi, Mr.
Nasser Bin Sultan Al Subaie, Mr. Ali bin

Abdulrahman Al Subaihin, Mr. Sami bin
Abdullah Al Mubarak, Dr. Abdullah bin
Ibrahim Al-Sharif, the Secretary General
of the Council.In addition to,
Dr. Abdullah bin Nasser al-Hawasi,
the Assistant Secretary-General for
Technical Affairs and Mr. Nayef Al- Refi,
the coordinator of the Council.
The Council members also met with
the providers of medical services, upon
the guidance of the Minister of Health
and the Chairman of the Board.
Icelands volcanic ash worries insurance companies
Insurance experts predicted that

insurance companies in the Arab region
and around the world would receive
many claims in the coming short period,
which will affect their financial results
for the Q2 of this year.
Icelands
volcanic
ash
forced
many insurance companies to pay
compensation for the travelers who were
12
stranded in airports around Europe and

elsewhere as the ash caused cessation
of flights from and to European airports
for around a week -at the beginning of
the second half of the month of April.
Insurance officials stressed that all
insured travelers who could not travel
because of accidents, malfunctions
or for other reasons, have the right to
obtain the necessary compensation in

addition to the compensation demanded
by the airlines that were affected by the
Icelands volcanic ash.
Insurance companies will also have
to pay compensation for passengers
who were stranded in airports. An
insurance specialist said that, Insurance
companies are committed to pay
compensation to passengers who were
trapped at airport, or anywhere else
during the Icelandic ash crisis.
In the USA, for example, most insurance
companies cover flights cancellations
for insurance policyholders. They also
cover the cost of the delays and provide
them with accommodation and food.
Al Sharq Al Awsat newspaper quoted
Arab insurance officials who compared
the consequences of ash disturbances to
what happened after the September 11
attacks in 2001 in terms of unemployed
individuals, the extent of damage and the
affected geographical area. Insurance
companies said that they had received
many calls from passengers asking for
help during the ash crisis.
Company Report
Saudi Arabian Cooperative

Insurance Company (SAICO)
One of the oldest established insurance firms in the Middle East, SAICO has been fully
licensed by SAMA to offer insurance in Saudi Arabia.
Saudi Arabian Cooperative Insurance Company (SAICO) underwriting activity in the
Kingdom of Saudi Arabia can be traced back to 1964, when Saudi Arabian Insurance
Company Ltd. BSC (C) associate Al Nisr Insurance Company SAL started operating in
KSA. Ever since its establishment in 1980, SAICO has been operating in the Kingdom
of Saudi Arabia through its general agents Arab Commercial Enterprises (ACE), which
has a network of operations across the Middle East region and Europe including Saudi
Arabia, Bahrain, Abu Dhabi, Dubai, Lebanon, Qatar, Oman, Kuwait and Greece.
14
In view of the opportunities presented by

the new Insurance Law, SAICO applied
for an insurance license through SAMA
to establish a new joint stock company.
The name of the new company is
Saudi Arabian Cooperative Insurance
Company (SAICO). Having obtained
license, SAICO has commenced
operations on 25 August, 2009.
SAICO has plans to open branches in
all important centers of Saudi Arabia.
Current agented locations include offices
in Riyadh, Dammam, and Jeddah.
The SAICO Chairman is Prince
Ahmad K.A. Al Saud. Members include
Abdulaziz Ali Abussuud, Ziyad Fekry
Omar, Dr. Saud Abdullah Al Ammari,
and Dr. George Shahin Medawar.
The company offers policies for
customers who seek insurance in the
following categories: Fire & Lightning,
Fire & Allied Perils, Property All
Risks, Consequential loss/loss of
profit / Business Interruption, Variety
Insurance Policy (VIP), Householders
Comprehensive, Sabotage & Terrorism
Insurance, War & Passive War
Insurance, Energy & Petrochemical
Risks, Specialized Insurance, Business
& Property Insurance.
CUSTOMER SERVICE
With
SAICOs
expertise
and
understanding of its corporate customers
goals, the company helps individuals,
families and companies plan for the
unexpected through a range of our most
advanced personal protection, universal
life, accident and employee benefits.
To ensure SAICOs commitment to
providing the best service level to
its customers, the company sells its
projects through a variety of distribution
channels that are dedicated to respond
to the requirements of our corporate
customers.
SAICO can design customized
employee protection benefits programs
that meet companies employee benefits
philosophy as well as budget on both
local and regional levels.
SAICO is committed to offering
insurance products and services that
provide quality protection with value
pricing, says Prince Ahmad K.A. Al
Saud. SAICO believes in successful
partnership with its customers, staff
members, agents, brokers, and insurance
Board of Directors
Audit committee
Executive
Committee
Actuary
General Manger
Internal Audit
Manager
Compliance
Officer
Assistant General
Manger
Internal Auditors
Branches
Officer
Non-Maritime
Insurance Manager
Financial
Manager
Administrative
Manager
Maritime Insurance
Manager
Marketing
Manager
With SAICOs expertise

and understanding of
its corporate customers
goals, the company helps
individuals, families
and companies plan
for the unexpected
through a range of our
most advanced personal
protection, universal life,
accident and employee
benefits.
Medical Insurance
General Manager
Reinsurance
Manager
Insurance Operations
Manager
Human Resources
Development
Manager
companies, that respect the interests

and goals of each other.
SAICOs success will be measured by
its customers belief in its ability to turn
risk into value. Some of the ways SAICO
achieve this is by actively diversifying
risk, by growing profitability, by steering
and controlling our activities with
excellence, and by capitalizing on our
financial strength.
The companys relies on a number of
core mission requirements to achieve
results. Those requirements include:
A clear course for sustained profitable
growth and value creation for our
investors; actions continuously geared
to the individual needs of our clients;
a strong capital base; integrated risk
management and the concentration of
our resources; the strength of our staff,
who develop the best possible solutions
with their knowledge; a pronounced
performance culture that motivates
our staff, setting clear objectives,
giving feedback openly, learning from
our mistakes and rewarding success;
a responsibility and commitment to
15
Company Report
transparency; and an obligation to the

society as a whole.
The company takes great pride in the
quality of its staff, who are all specialists
in their particular fields and with values
that rely on integrity, client, respects,
excellence and teamwork.
SAICO employees work hard to
provide profits to the business. They
work hard to provide for their families
future as well. The companys Employee
Benefits products are the best gift SAICO
can provide to their Employees and to
their families, assuring them protection
against unforeseen events.
INSURANCE OPTIONS
Companies who want the best for their
employees choose from a menu of
options SAICO offers to its own highquality staff.
The benefits can be a combination of
16
The Life benefits is

designed especially to
support the employeremployee relationship,
says Prince Ahmad K.A.
Al Saud.
one or more of the following coverage,
known as the comprehensive group life
benefit, and covering Natural Death,
Accidental Death, Permanent Total
Disability, Permanent Partial Disability,
Medical Expenses Reimbursement,
Repatriation Expenses, and Temporary
Total Disability.
The Life benefits is designed especially
to support the employer-employee
relationship, says Prince Ahmad K.A.
Al Saud.
This is the basic and simplest form of

Group Life Insurance, wherein a lump
sum benefit amount is paid in case of
loss of life due to any cause any time
and anywhere in the world. The Cover
includes loss of life due to a Passive
War.
Employers have flexible options in
benefits selection according to their
Employees needs and the corporate HR
philosophy; fixed insurance amount,
multiple of income insurance, or benefit
scales per employees grades.
Corporate can add an extra layer of
protection -- called accidental death -to its Employees while maintaining the
standard Group Life benefits. This benefit
provides additional insurance proceeds
in case of employees loss of life due to
accident anytime and anyplace.
Employees want assurance that they
will not be a burden to their families or
to the society they are living in when

things would not turn out for the best,
says TKTK.
A lump sum is paid in case the
Employee suffers a permanent and total
disability due to accident or sickness and
cannot perform his/her own occupation
or any occupation for which she or he is
suited by reason of education, training
or experience.
A proportionate percentage of the
Group Life benefit is payable to the
Employee as per the Schedule of
payments provided by SAICO in case
of partial loss or non-functionality of
specific parts of the body due to accident
or sickness.
Medical expenses reimbursement
coverage indemnifies the loss for medical,
surgical, specialists fees, hospital,
nursing home, nursing attendants
charges, costs of physiotherapy, message
and manipulative treatment, surgical
and medical requirements in respect
of such person or persons as may have
sustained accidental body injuries or
illnesses up to the agreed sum insured.
Repatriation expenses benefits cover
the expenses incurred in returning the
body to the employees residence or the
country of origin. Covered expensed
include but not limit to the cost of
embalming, coffin and transportation of
the body.
Temporary total disability, or temporary
weekly income replacement, will pay
a percentage of the weekly income of
the Employee for 104 weeks in case
of a temporary total disability resulting
from accident or sickness while the
Employee is unable to perform his/her
own occupation.
Ship crew members can be insured
for accidental benefits such as, Death,
Permanent
Disablement,
Medical
Expenses, Repatriation, and Temporary
Total Disability.
Travel insurance coverage is also
provided by SAICO. This covers death,
loss of eyes, limbs, & Permanent
Disablement, medical expenses.
SAICO offers Hauliers Liability Insurance Policy, which

covers Liability of the Transporter/Truck Owner to the
Cargo Owners in the event of a loss or damage to the
cargo for various reasons
Policy is given in two forms: Liability
of the Hauliers for All Risks as per Land
Transit All Risks Clause and Land Transit
(Normal) Perils such as accidents to the
carrying vehicle etc.
This Policy is given as a Individual
Policy or as a Open Policy covering
the cargo carried all through the year.
The Truck Number or list of Trucks is
endorsed to the policy. This means, the
Policy is issued only to Owners of the
Trucks and not to Forwarding Agents or
others.
The cover is given predominantly for
transits with in Saudi Arabia, and is
sometimes extended to cover transports
with in GCC countries and occasionally
extended to cover neighboring Arab
countries.
Another insurance product offered
by SAICO is a Marine Hull Policy,
which covers many different kinds of
vessels, which are broadly categorized
as: Ocean Going Vessels which are
designed to trade in the Blue waters
(High Seas) and Coastal waters; Coastal
Vessels which by the name implies are
mainly intended to be used for voyage
in coastal waters only unless specifically
certified to trade in Blue waters (High
Seas); Inland Vessels which are intended
to trade only in inland waters of the Port,
River, Lake etc.
Most of the ships and smaller vessels
are made up of steel. However some of
the smaller vessels such as barges, tugs,
fishing vessels, sailing vessels are made

of wood or fiberglass. Steel vessels are
considered to be better risk than wooden
vessels. Ships shape and size vary and
the construction differs depending on
cargo to be carried and the purpose for
which it is built.
A third product is a Marine Cargo
Policy, which covers loss or damage to
cargo in relation to and in connection
with its carriage by land (whether by
motor vehicle or by railway); waterways
(that is to say by ship which includes
every description of vessel used in
navigation); air (that is to say, by aircraft
used for the transport of cargo, among
others); and government or private
postal services; from any place in the
world to any other place in the GCC
countries and vice versa. Cargo means
any movable, tangible property (other
than container, motor vehicle, railway,
ship and aircraft used for the transport
of cargo). The Policy provides cover
against loss or damage to cargo during
transit from one place to another by
any one or more of aforesaid modes of
transport.
OTHER POLICIES
SAICO offers Hauliers Liability Insurance
Policy, which covers Liability of the
Transporter/Truck Owner to the Cargo
Owners in the event of a loss or damage
to the cargo for various reasons. This
17
Snippet
Egypt: insurance sector

contributes 1.1% percent of GDP
The Egyptian insurance market has made
great progress during the past five years,
as demonstrated by its expansion and
increasing growth rates. The insurance
industrys contribution to GDP hit 1.1
percent in 2008/-09 compared to 0.8
percent in 2004/-05. The Egyptian market
has 29 insurance companies.
According to Dr. Mahmoud Mohieldins
, the Minister of Investment, who delivered
a speech on behalf of prime Minster Dr.
Ahmed Nazif at the Egypt Euromoney
Insurance Conference, investments in life
insurance companies increased to about
EGP 15.4 billion in 2008/-09 compared to
EGP 7.4 billion in 2004/-05.
The Minister of Investment reiterated on
the importance of expansion in providing

insurance services nationwide through
branches of public and private insurance
companies, in line with the States states
general policy, which aims to provide
citizens with all services. He noted that it is
very important for the Egyptian insurance
companies to work outside Egypt, either
in the Arab or Asian or Gulf markets.
He added, The Egyptian government
has enforced a package of reform and
development policies and programs
since 2005, which centered on three
main pivots: Developing the insurance
sectors legislative structure, developing
the insurance Servicesservices, and
restructuring and broadening ownership
base of state-owned insurance firms.
He stressed on the need to exert extend
major efforts in to the coming phase to
continue pushing the insurance market
development forward so that it can cope
with economic and technical changes.
The insurance sector will shoulder major
responsibilities during the coming period,
and this requires concentrated efforts to
remove all obstacles for development, he
concludedsaid.
Life Insurance planned for Saudi

soccer clubs
The Member of the Professional and
Public Players Commission in the Saudi
Soccer Union, Dr. Majid Qaroob, recently
announced that the union and the
commission are studying the possibility
of requiring life insurance policies for all
soccer clubs in Saudi Arabia. The policy will
cover all situations that require insurance,
including the sudden death of players.
The professional list accredited to
the Saudi Soccer Union recommends
medical and comprehensive insurance for
all players, Qaroob told the newspaper,
Al-Watan. Under these terms, soccer
players have to enclose their medical
examination results with other documents.
This procedure gives moreassurance for
the heath of our players, and excludes the
existence of any medical conditions.
The professional and public players
commission headed by Dr. Saleh bin
18
Nasser asked the help of the insurance

Chancellor Adham Jad to put into clear
terms a comprehensive insurance plan for
professional football players and clubs in
Saudi Arabia.
The commission also held a number
of workshopswith Saudi clubs to come
up with an agreed insurance policy that
involves all clubs. The participation of all
clubs will enhance the value of the policy,
reduce the subscription fees, and raise
the compensation amount. We believe
insurance policies will serve both Saudi
and non-Saudis players.
Qaroob thanked the Saudi clubs for
their fruitful contribution. Currently,
insuring soccer players is a mandatory
requirement, but many clubs have gone
further in insuring their players. This
approach is consistent with Saudi law
and regulations.
French storm
costs insurers
500 million
euro
Insurers face a bill of around
500 million euros ($682 million)
following severe storms in parts of
western France, the head of French
reinsurer Scor told BFM radio.
Scor Chief Executive Denis Kessler
said insurers would cover around
half the total damage -- estimated
at around 1 billion euros -- with
much of the remainder covered by
the governments central insurance
fund.
Insurers will cover damage caused
by wind, while the governments
central insurance fund would cover
water damage, Kessler said, referring
to a state-backed natural disaster
compensation scheme.
Heavy rain combined with strong
winds and high tides destroyed
several Atlantic coastal sea walls
along the regions of Vendee and
Charente Maritime, killing at least
52 people.
Fitch Ratings agency estimated the
losses from the storm, Xynthia, to
be material, but manageable within
the earnings of French insurers.
Obama tells Egyptian doctor: Because of you, the US

now has a health insurance system
The US president Barack Obama sent a short telegraph
to a scientist of Egyptian origin, thanking him for his
role in laying the foundations for comprehensive health
insurance system in the United States, which was
approved by the Senate and the Congress recently.
Obama said in his message to Dr. Samir Naguib
Banoob: Samir...Because of you, Americans are now
covered under the health insurance, thank you so
much.
Banoob enjoys wide respect and attention in American
circles.He specializes in health policy and hospital
management. Banoob is also a professor and adviser to
the Department of International Health and an expert
in the World Health Organization. He participated in
drafting the health insurance plan that for the first time
covers all classes in American society.
Banoob expressed his happiness with Obamas letter,
saying the health insurance system was as a dream
comes true to both Banoob and Obama.
I was responsible for developing the policies and the
programs of the heath insurance system and how to
implement it on the ground, he said. The most important
part of the project is the fact that health insurance will
now be compulsory, as the previous insurance fees
prevented the entry of 42 million Americans under the
umbrella of health insurance.
I believe that the universal health insurance system in
any country presents a protection to all citizens. I have
contributed to the introduction of a comprehensive
health insurance system in the countries of Eastern
Europe.
Lebanon: Insurance premiums hit US $720

million in 2009
A study carried out by Al Bayan magazine
last March revealed that insurance
companies in Lebanon have recorded a
22 percent increase in common dangers
insurance -- which does not include life
insurance. The total insurance premiums
made by 48 licensed companies reached
US$720 million in 2009, compared to
US$590 million in 2008.
The magazine attributed this increase
to the alliances and links between the
banks on one hand and insurance
companies on the other hand. Many
banks have started to promote insurance
contracts through branches spread

across Lebanon. The study also noted
that the boom experienced by the banks
of Lebanon played a role in raising the
insurance premiums at an accelerated
pace.
Medgulf came first in terms of profit
reporting insurance premiums worth
of US$94 million, followed by Bankers
with US$67.5 million, Arup with
US$47.9 million, AXA Middle East with
US $46.9 million, Allianz SNA with US
$46.1 million and Lebanese- Swiss with
US$45 million.
19
Hot Topic
same
component, different packages
By Khaled Abu Hussein
An insurance policy is a legally binding
contract between an insurance company
and the policyholder, who also is often
the person insured. In exchange for
payment of a specified sum of money,
or premium, the insurance company
agrees to pay for certain types of loss or
damage as specified by the contract.
In Saudi Arabia, insurance policies
refer to those offers made by
insurance companies to private sector
companies that are willing to provide
health insurance for their employees
in accordance with the amended
regulations issued by the Council of
Cooperative Health Insurance, and the
amended cooperative health insurance
policy. Insurance companies compete
with each others by offering more
attractive services and products.
Given the sensitivity of the issue
because of the confidentiality of such
information offered by health insurance
companies, it was difficult to obtain the
needed information. Some companies
refused the whole concept while
otherswere reluctant to disclose any
information. Only few companies agreed
to provide us with some information
about their insurance policies to share
with our readers.
To shed light on this contentious issue,
taking into account the confidentiality
of such information, we will not name
any particular party.
budgets ahead of time and can avoid

any sudden expenses, especially in
light of the growing rise in the prices
of medical services
Health insurance policies shift the
burden of healthcare for workers
and their families from the private
companies to insurance companies
and reduce administrative expenses
Health insurance policies provide
insurance coverage for illnesses and
accidents in accordance with the
cooperative health system and its
executive regulations
Insurance company (A) said in its
promotion booklet that it has many
branches across Saudi Arabia, which
enables it to provide the best insurance
services, 24-hours inside and outside
Saudi Arabia (during holidays and
business trips). The booklet also
identifies how the policyholder can use
his medical insurance card, and which
accredited health centers to visit.
The company (A) also provides a
link between its employees and the
beneficiaries through free calls centers,

excellent medical services centers, and
a special unit for medical claim followups. The company can also allocate
an external clinic near the private
company office to provide medical
services, seven hours per day, five to
six days a week.
The insurance policy (a) shows the
type of coverage. It is an annual contract
paid once.The policy indicates the
number of employees and their families
details in addition to the quality of the
product provided of them, according to
the companys products.
The type of health coverage for
employees includes internal and
external clinics in compliance with the
cooperative health insurance policy.
The policy annual limit for each person
is SR250,000. The daily allowance
includes a special room, with full
coverage of the general doctor, the
specialist and the consultants fees. The
policy (a) indicates that the insurance
coverage outside Saudi Arabia is valid
for 30 days, in emergencies only.
Some private institutions are not fully aware of the

importance of insurance, said N. E, who prefers to stay
anonymous, an employee at one of the oldest insurance
companies in Saudi Arabia.
Policy (b)
Insurance company (B) provides insurance
policies according to the following
degrees: VIP, A, B, C, taking into account
children up to 17 -year-old and males
between 18 to 64 year-old. The policy
covers medical treatment inside and
outside Saudi Arabia (or 150 km from the
place of residence) but it does not include
work-related injuries and diseases.
VIP insurance policy: The policy
annual limit for each person is SR1
million. The daily allowance includes a
special suite, dentist visits up to SR5000,
ophthalmologist visits up to SR1,250,
pregnancy and childbirth up to
SR15,000. The policy covers chronic
illness completely, in case of the sudden
death of the policyholder outside Saudi
Arabia; the policy covers the expenses
of transferring the body to home country
(up to SR10,000). Full insurance
coverage aboard and in outpatient
clinics, vaccinations are fully covered
up to six years-old, according to the
agenda of the Ministry of Health. The
policy covers dialysis (up to SR100,000)
and acute psychological problems (up
to SR15,000).
Insurance policy A: The policy annual
limit for each person is SR250,000.
The daily allowance includes a special
suite, dentist visits up to SR2000, and
ophthalmologist visits up to SR2000.
Policy (a)
This insurance policy provided by
insurance company (A) to a private
company details the benefits and
advantages of health insurance coverage
including:
Health insurance policies determine
the cost of the needed healthcare
treatment in advance; this way,
private companies can prepare their
20
21
Hot Topic
Insurance policy B: offers the same
coverage as insurance policy A; the
only difference is that it only covers a
double-bed room. Insurance Policy C
did not differ from its predecessor.
Insurance policy B indicated that the
payment of the contract value should
be completed prior to the delivery of
medical cards.It also highlighted the
preventive measures adopted by the
Ministry of Health, as shown by the
policys special conditions, including:
The contractor agrees that some
amendments that cannot be applied
during the warranty period (such as
job promotions). Those amendments
can only be applied when renewing
the contract.
The coverage extends to all parts
of the world to cover the costs of
emergency treatment during the
holidays and business trips (annual
total of 60 days per person)
The policy covers the costs of
emergencies 100 percent in the
unaccredited centers (within or
outside the Kingdom of Saudi
Arabia), according to rates applied

in accredited medical centers
The policy covers claims costs in case
of emergencies outside accredited
medical facilities for a period of 15
days from the date of receiving the
claim, all required documents must
be available
The
policy
covers
newborn
circumcisionand ears piercing as
part of the pregnancy and childbirth
coverage
The policy covers some of the tests
and examinations for adults once
a year. The insurance company in
each city determines the date and
the medical facility
The policy covers the vitamins
prescribed by the physician for those
cases covered under the insurance
policy if they are part of an essential
and necessary medical treatment
The policy covers allergy cases
except allergy examinations and
immune response tests
The policy covers organ transplants
except heart and liver transplants
and liver, the policy does not cover
donors costs
The policy covers 80 percent of nonemergency treatment costs outside
of Saudi Arabia according to rates
applied in accredited medical
centers, the beneficiary must
obtain a prior approval from
his company only to cases of
hypnosis, and the compensation
principle will not apply on
dental and ophthalmology
claims
The policy does not cover
intentional self-injury, diseases
that arise due to the misuse of drugs
or sedatives or alcohol, cosmetic
surgery unless it was caused by
physical injuries that already covered
in this policy. The policy does not cover
recreation and general physical health
programs as well as comprehensive tests,
vaccines, drugs or preventive measures
that do not require medical treatment
(with the exception of preventive
measures specified by the Ministry of
Health, such as maternal and childcare
vaccinations).
following categories: diamond, gold,

silver, bronze, blue and white.
The insurance policy covers medical
treatments that comply with the
requirements of the cooperative health
insurance system and medical treatments
in internal and external clinics and
accredited hospitals. It also covers
optional treatments in unaccredited
hospitals, medical emergency coverage
outside the Kingdom, pregnancy and
childbirth coverage from the first day,
dental and ophthalmology treatment,
hearing aids devices, physical therapy,
vaccinations, and medical evacuation
service around the world.
The policy provides the following services
to all categories: medical treatments in
internal and external clinics, pregnancy
and
childbirth,
circumcision,
ear
piercing, complications of pregnancy and
childbirth, treatment of premature infants
and newborns, dental, chronic illnesses,
vaccinations, physical therapy, dialysis and
medical evacuation.
Diamond insurance policy: The policy
annual limit for each person is SR600,000.
It covers a special room, dentist visits up
to SR5000, ophthalmology and hearing
aids devices up to SR2000, pregnancy
and childbirth up to SR20,000. It covers
emergency treatment outside of Saudi Arabia
up to SR100,000, as well as home visits.
Gold insurance policy: The policy annual
limit for each person is SR500,000. It covers
dentist visits up to SR4,000, ophthalmology
and hearing aids devices up to SR1,500,
pregnancy and childbirth up to SR15,000.
It covers emergency treatment outside of
Saudi Arabia up to SR75,000. Home visits
are not covered in this category.
Silver insurance policy:Treatment is carried
out in a single room; dental treatment
coverage does not exceed SR3,000. It
covers emergency treatment outside of
Saudi Arabia up to SR50,000. Home visits
are not covered in this category.
The bronze insurance policy offers the
same coverage as the sliver insurance
policy sliver; the only difference is that
dental treatment coverage does not exceed
SR2,000 a year. Blue and white policies
are the same as well but they only cover
hypnosis in a double-bed room and they
do not offer medical evacuation coverage.
Policy (c)
The Outcome
Insurance company (C) provides

insurance policies according to the
22
After reviewing some of the insurance

policies provided by Saudi insurance
companies, we notice that all companies

are complying with the amended
regulations issued by the Council of
Cooperative Health Insurance, as well
as the amended cooperative health
insurance policy. Services and costs are
what distinguish an insurance policy
from another.
Health insurance services are dictated
by several factors, including the
network of each insurance company,
management, the quality of the
company and its financial solvency, the
number of employees and the number
of beneficiaries among other issues.
Some private institutions are not
fully aware of the importance of
insurance, said N. E, who prefers to
stay anonymous, an employee at one
of the oldest insurance companies in
Saudi Arabia.
They see insurance as a great lossor
a tax that should be paid in order to
improve their relationships with some
administrative bodies which require
health insurance. Such companies
usually ask for the cheapest prices
regardless of the quality of the services.
Some may even have sham insurance
policy.In fact, we face many similar
problems and we try hard to deliver
our message to these few companies, to
make them understand that insurance
is not a loss; on the contrary, it protects
their profits.
Asked about the main differences
between insurance companies, N. E
stated that the most important factor
is credibility, Most people cannot
see the difference between insurance
companies, he said. Is not always
about high prices. I think the best
companies are those which offer a wide
range of services at lowest cost.
Mr.
Ghassan
Abdel
Halim,
insurance
director,
Arabian
ShieldCooperativeInsuranceCo,
agrees with N. E. The majority of
customers focus on the price of the
insurance policy with no attention to
the quality of services, which forces
many insurance companies to provide
less quality services in lower prices, he
said.
Some insurance companies that are
providing appropriate health services
worthy of its reputation and its ethics
find it really hard to compete with
other companies. Nearly 75 percent of
customers care about the price, only

25 percent care about the quality of
the service. I think this is related to the
customers lack of knowledge and the
limited experience of some insurance
companies.
What do employers say?
While insurance companies complain
about employers unawareness of the
importance of insurance, business
owners accuse insurance companies of
fraud.
Some insurance companies are trying
their best to find a problem here or
there so to force customers to buy their
insurance policies, says Khalid AlMasri, executive director at one of the
oldest publishing houses in the Saudi
capital Riyadh. Sadly, many of their
services are like a miragethe desert.

I went thorough this personally.
I contracted with an insurance company
and after studying my options, I chose
an insurance policy clearly stating that
the health insurance coverage includes
diseases prior to the insurance coverage.
The first time I went to the hospital, my
request was denied on the pretext that
the company, my company, did not
inform the insurance company of the
diseases my employees and me may
suffer from.
Because of the lack of credibility
and clarity of the company we decided
to terminate our annual contract and
replaced it with a credible insurance
company, in terms of services or respond
to the needs of the staff. All what we
care about at the end is the health of
our employees, he said.
23
Dr. Soliman Fakeeh Hospital unveils its

healthcare CSR report
Approved by Global Reporting Initiative (GRI)
The DSFH report is also the first nonfinancial report to be developed by a

hospital in the region. The CSR report
not only looks at steps to raise standards
of patient treatment and care but
also reinforces DSFHs responsibility
towards the local community in order
to improve the quality of life and
productivity. The report, developed
with international standards, was
applauded and approved by the Global
Reporting Initiative (GRI) to be the first
non-financial report to be developed
by a hospital in the region.
Dr. Soliman Fakeeh Hospital strives to
promote public health and continues its
support for social programs to improve
the quality of life for the people of
Jeddah, and neighboring cities in the
western region through its support for
social initiatives, charity, health and
free awareness campaigns.
Participating in Public Policy
Dr. Soliman Fakeeh, the general
director of the hospital, is a member
in a number of organizations,
including the health committee at
Jeddah Chamber of Commerce and
the Communications Commission at
the Ministry of Health Saudi Arabia,
which consists of representatives from
a number of private hospitals. He is
also a member of Mecca Development
committee chaired by His Highness
Prince Khalid Al-Faisal bin Abdulzziz,
Emir of the region.
The Mecca Development committee
is the highest authority responsible
for health care programs and strategic
planning of Mecca. Its Board of
Directors consists of representatives
of all healthcare providers in the
region, including private, public and
military hospitals as well as King Faisal
Specialist Hospital.
By Ameera Hamda
Aimed at reinforcing its commitment to sustainability and responsibility to the

social environment it operates in, Dr. Soliman Fakeeh Hospital (DSFH), one of
the leading names in the regional healthcare sector, recently unveiled a first-ofits-kind healthcare Corporate Social Responsibility (CSR) Report.
24
Social Advisory Committee

The Advisory Committees CSR
annual report covers aspects of the
organizations
performance
and
highlights the objectives of the hospital
for years to come.
In line with its Strategic Plan for
2004-2008, Dr. Soliman Fakeeh
Hospital
established
its
Social
Advisory committee in 2008. The
committees
members
include
hospital representatives, community
and
government
representatives
and health care professionals. The
Director General of the hospital heads
the Social Advisory committee. The
Social Advisory Committee focuses on
providing social and healthcare support
to the community by identifying and
meeting the communitys needs through
many programs that commensurate
with the hospitals goals.
The Advisory Committees recent
recommendations focused on enabling
patients to review the qualifications
of their doctors and providing safe
disposal of needles for diabetics. It
was also responsible for offering clear
directions about how to deal with
accidental fires and safety procedures
in the rooms of patients.
The committee is also responsible
for analyzing the potential strengths,
weaknesses, opportunities and risks,
and developing strategic plans. It
nominates a member of the social
counseling committee to the Research
and Ethics Committees.
In 2008, the committee came up with
the idea of placing electronic monitors
at the entrance of the hospital, allowing
patients and visitors to review information
about the hospital, the services it offered,
the doctors and their qualifications and
to inform them about the hospitals many
social, health and educational activities.
The Committee has also placed three
television screens in different locations
at the hospital to provide patients and
visitors with information about diseases
and healthcare.
During 2008, the committee carried

out many social programs, including
the National Day of diabetes, which
included a free examination of
diabetes, body mass index and blood
pressure measurements, as well
as various medical examinations.
It also distributed free bloodsugarmeasuringdevices,
and
educational brochures about diabetes
and organized lectures on diabetes:
how to measure blood sugar, what to
eat, how to use diabetes devices and
more.
During the World Week for Mens
Health, the committee provided free
examinations to the public including
the examination of sugar and fat in the
blood, examination of antimatter in
the prostate (PSA), bone density, body
mass index, endocrine measurements
and
distributed
educational
pamphlets.
On World AIDS Day, the committee
distributed educational pamphlets
about the disease. It also organized
Arthritis Day, distributing educational
pamphlets and offering bone density
measurement for the public free of
charge.
The Advisory Committee organized
a public awareness campaignabout
breast cancer, offering counseling,
breast screening and blood pressure
measurement free of charge at the
Family Medicine Department and
educational flyers about the importance
of early screening.
25
Community Awareness
In 2008, the Mecca Development
committee adopted several initiatives
to educate the public about common
health issues such as obesity and
diabetes.Dr. Soliman Fakeeh Hospital
participated in the campaign by sending
brochures and publications to various
governmental and private institutions.
Under the auspices of the hospital,
the Mecca Development committee
organized the first diabetic camp for
children with the participation of 60
children, and with the presence of
doctors and nurses at a summer camp
in Dorat Al Aros resort.
Patient Teaching Center
The Patient Teaching Center (PTC)
was established in May 2007 in order
to increase awareness of the general
population about healthy lifestyle
and common medical disorders and
educate patients about their illness
so that they can participate in their
treatment and in clinical decisionmaking.
The center also opened its doors
to group training for patients and
interested groups.In 2008, the Center
participated in several awareness
campaigns including: Obesity campaign
in cooperation with the Islamic Bank
and the World Diabetes Day, the
Best Cancer campaign, Osteoporosis
campaign, the International Day of
the (HIV), Arthritis day, Heart Diseases
Week, and Smoking campaign.The
Center provided educational services
for 8168 patients
Cardio-pulmonary
Rehabilitation Training Center
The
Center
organized
training
courses on first aid for Cardiopulmonary rehabilitation to enable
trainees to identify life-threatening
emergences.The courses covered the
following topics:
First aid procedures
CPR for adults
CRP for children and infants
How to use AED devices
How to remove foreign body from
airway hampers
How to identify heart attack
symptoms
What are the warning signs of
stroke
26
The Nursing and

Medical Sciences
Collage also contributes
to the public health
through lectures,
seminars, health fairs,
and participates in the
World Health Day
Investing in the Community
Dr. Soliman Fakeeh Hospitals Nursing
and
Medical
Sciences
Collage,
accredited by the Ministry of Higher
Education, provides the hospital with
qualified Saudis nurses (men and
female). The collage runs an internship
program for graduates, followed by a
development program to enhance career
opportunities for Saudi graduates.
The hospitals management takes
into consideration the governments
initiative for Saudization. The hospital
measures its success by the number
of Saudi graduates, who work in their
specialization, such as operation
rooms, dialysis units, and intensive
care units for adults and children.
The Nursing and Medical Sciences
Collage also contributes to the public
health through lectures, seminars,
health fairs, and participates in the
World Health Day and in vaccination
campaigns in collaboration with the
Ministry of Health in Saudi Arabia.
Creation and distribution of
direct economic value
Dr. Soliman Fakeeh Hospital is
committed to providing quality
medical services consistent with the
highest ethical, legal and economic
standards.One of the means of meeting
those standards is to manage activities
effectively.In 2008, the hospital
invested in the following areas:
Disbursing an amount of SR
3,429,890 for poor patients
treatment
Adopting an amount of SR
2,033,484 for the establishment
of Nursing and Medical Sciences
College
Establishing a Patient Teaching
Center with a budget of SR
137,000
Emergency Plan
Dr. Soliman Fakeeh Hospitals
emergency plan consists of two parts:
Interior standby:
The Interior plan provides guidance,
response and recovery in the case of
an emergency that may hamper the
delivery of services in the hospital.The
plan is based on the full coordination
between the relevant departments
within the hospital.
In case of emergency, the emergency
team gathers in the emergency
management center to control the
impact of the disaster, and ask the
opinion of experts in the affected area
before making a final decision. The
preparation of the emergency plans
is done in accordance with local and
international standards.
External Standby:
The external plan provides guidance,
response and recovery in the case of
an emergency that may hamper the
delivery of services in the hospital. The
Security and Safety Service unit works
in cooperation with the authorities of
civil defense and medical emergency
organizations to ensure coordination
of efforts in case of a disaster.The
plan is tested periodically during
programmed exercises supervised by
the Consultative Group for disasters,
carried out by the Security and Safety
Unit in the hospital and the Department
of Total Quality.
27
Cover Story
Private Health Sector

Offers Potential investment
opportunities
By Mustafa Shihab
A huge gap between supply and demand in the Kingdom is an

excellent chance for local and international companies to satisfy a
growing populations desire for hospitals
28
The health sector in Saudi Arabia is

one of the six pillars of the economy,
and many even believe it is the most
important in terms of spurring the
economys competitiveness. This is due
to a combination of new labor laws and
the opening of the Kingdoms insurance
sector to regional and international
competition. Regionally, it is one of
the largest in terms of size, activity, and
potential.
After the application of a mandatory
health insurance scheme, Saudi
citizens working in the private sector
and expatriate employees will both
have to be covered by their sponsor and
will no longer receive free treatment at
government hospitals. Although the
entry of the private sector had provided
an instigation to set up of new hospitals
and polyclinics, more investments in
the health sector are still needed to
meet the Kingdoms population growth
and spur development in the health
care and pharmaceutical sectors.
Experts believe that Saudi Arabias
streamlining of the insurance industry
will be a major catalyst for dramatic
growth levels.
To talk about the gap between supply
and demand in the health sector and
the size of the needed investments
in the sector, we met with Dr. Saleh
Guenbaz, a member at the National
Health Committee, Saudi Chamber of
Commerce of Industry, and Mr. Abdul
Rahman bin Mohammed Obaid, the
Chairman deputy at Dr. Sulaiman Al
Habib MedicalGroup.
We started by asking Dr. Guenbaz if
he agrees that there is shortage in the
number of private health institutions.
His answer was yes, noting that despite
the two percent increase in the number
of hospital beds in the past five years,
most of these beds were added in
hospitals located in major cities.
The numbers of private hospitals in
1425AH reached 11,135 beds. We now
have (11,362) beds, he said. There
are a number of projects focusing on
establishing new hospitals, but they
are still in the first stages. The general
increase in hospital beds in public and
private sectors is only amounted to
eight percent during the same period.
According to Dr. Guenbaz, the number
of hospital beds in 1425AHincreased
Dr. Saleh Guenbaz:

Despite the 2
percents increase in
the number of hospital
beds in the past five
years, most of these
beds were added in
hospitals located in
major cities.
We need to increase
the number of beds
in the Kingdom to
approximately 75,000
beds. We now lack 20,
000 beds with a cost of
SR 25 to 30 billion.
from 49,861 beds to 53,519 beds,
but these increases were offset by the
populations growth, which led the ratio
of beds per 1,000 people to decline
from 2.25 beds per 1000 to 2.17 beds.
Mr. Abdul Rahman bin Mohammed
Obaid agrees with Dr. Guenbaz. The
shortage in the health centers and
private hospitals in Saudi Arabia is
the reason behind this gap between
supply and demand, he said. I think
that we should not focus only on the
number of hospitals without paying
attention to quality of service provided
in accordance with the strategy of the
Ministry of Health as the private sector
is a key partner to the public sector in
developing the health sector.
Asked if the mandatory health
insurance has put more pressure on the
existing health institutions, Mr. Abdul

Rahman said this: Mandatory health
insurance made a breakthrough in
the development of medical services.
The Council of Cooperative Health
Insurance (CCHI) rules have increased
the competition for providing the best
services. The Ministry of Health plays
an important role in monitoring the
quality of services offered byhealth
services to cooperative health insurance
beneficiaries.
He pointed out that everybody is
pinning great hopes on CCHI, because
its procedures and controls will be
the real test for the success of health
insurance in Saudi Arabia and can
cause a major shift in many medical
institutions.
The inclusion of non-Saudis and
Saudis nationals working in the private
sector under the mandatory health
insurance has put more pressure on
private health facilities, Dr. Guenbaz
noted, admitting that there no statistics
to support his argument.
After the implementation of mandatory
health insurance, are the medical
institutions well equipped to meet
the significant increase in demand for
health services? The Chairman Deputy
at Dr. Sulaiman Al Habib Medical Group
said this: I do not know for sure, but in
general, investing in the health sector is
very expensive and challenging. If you
want to provide high quality services,
you have to highly invest in qualified
medical expertise, and import the latest
and best -- and expensive -- medical
devices.
According to Mr. Abdul Rahman, Dr.
Sulaiman Al Habib Medical Group is
working towards more specialization
in the administration of health facilities,
especially after the successful setting
up of the first specialized center in
the Middle East for the treatment of
infertility and reproduction, and the
Maternity hospital, which is equipped
with superior medical services. Dr.
Sulaiman Al Habib Medical Group is
also preparing to launch the largest
hospital specializing in orthopedics,
spine and joint replacement, the first
hospital specializing in cardiac surgery
and the first private Medical City.
Dr. Sulaiman Al Habib hospital in
Al Rayan provides integrated health
29
Cover Story
services in all disciplines and is
equipped with the largest number of
incubators among all hospitals in the
Kingdom, he said. It also includes the
first specialized center for the treatment
of obesity in accordance with the
international quality standards.
Dr. Guenbaz confirms that the
private sector reacts rapidly with the
volume of work and strives to provide
distinguished services, because any
private health facility that does not
respond to the needs of the sector will
lose its position in the marketand with
insurance companies.
The recognition program has
become mandatory for hospitals, and it
will be applied to other health centers,
he said. The program will impose
scientific indicators on the numbers
of employees working in medical
departments -- quantity and quality -which will push many health facilities
to expand their qualitative services,
and introduce new medical specialties
including heart surgery,
30
Although there is an increasing interest for

developing specialized medical services to meet the
increasing demand, I think the number of specialized
medical centers is still below the required level, Dr.
Guenbaz said.
dialysis and surgical operations.
Is there is a need to diversify the
health services and medical specialties?
Mr. Abdul Rahman bin Mohammed
Obaid stresses that it is very important
to diversify the services and increase
medical specialties to keep up with
the various health developments taking
place in the Kingdom. We need to
organize thehealth services based on
the needs of the patients, keep abreast
with the status variables, and interact
with the wishes and needs of health
care beneficiaries.
With regard to shortage of private
hospitals and hospital beds, Dr.
Guenbaz points out that most of the

hospitals are currently performing first
and second levels services.
Although there is an increasing
interest for developing specialized
medical services to meet the increasing
demand, I think the number of
specialized medical centers is still
below the required level, he said.
Dr. Guenbaz listed several reasons
for the difficult and continued need for
specialization:
Specialized medical services are
expensive in terms of technology
There is a shortage of specialized and
experienced medical teams
It is difficult to import experts from

outside KSA borders
The volume of investment in medical
technology and the high payrollhad
put pressure on the private sector,
therefore, the any financial return
doesnt necessarily meet the standards
of the private sector
Asked about the areas that need
specialized medical services, and
whether the current distribution of
medical institutions meets the needs
of the patients, Dr. Guenbaz said this:
The answer to such question needs
a demographic research. The private
sector depends on economic feasibility
studies and proactive equations to
decide where to locate the medical
institutions. No private health facility
can stay in the market if it cannot
overcome its expenses. Therefore, we
find that many of the private health
facilities are concentrated in large
cities.
Dr. Guenbaz called upon the Ministry
of Health and the King Abdulaziz City
for Research to conduct a study on
this issue, identify the areas of greatest
demand, and put a plan to identify
opportunities for the private sector.
The Ministry of Health must be
committed to mobile areas in the future
and to consider the private sector as a
strategic partner in these areas. The state
can also buy some of these services. I
have no doubt, that such initiativeswill
encourage many to invest heavily in
the health sector, he said.
The Deputy Chairman of Dr. Sulaiman
Al Habib Medical Group confirms that
many citizens complain about not
having health facilities in their areas
and that all the attention is focused
on major cities. He also notes that the
quality of health services provided in
hospitals located major cities are better
than to those located in mobile areas.
This is illogical, he said.
On the need to call upon large
investment companies to invest in
the establishment of new health
institutions, Mr. Abdul Rahman said
this: The Saudi private sector in recent
years has set a good complementary
role in supporting the public sector
in financing, operating and delivering
of health services. The Ministry of
Health considers the private sector as
The Deputy Chairman of

Dr. Sulaiman Al Habib
Medical Group confirms
that many citizens
complain about not having
health facilities in their
areas and that all the
attention is focused on
major cities.
Abdul Rahman bin

Mohammed Obaid:
The mandatory
health insurance
made a breakthrough
in the development
of medical services,
while the Health
Insurance Councils
rules have increased
the competition for
providing the best
services
a trustworthy partner and it support the

investment in specialized and longterm medical projects.
The successful health systems must
respond to the needs of patients, and
deal with the future and its challenges
to achieve competitive sustainability in
delivering health services. Although,
he said, the investment in medical
sector remains expensive but it very
tempting as well.
Investment inthe medical sector in Saudi
Arabia and the Gulf is attractive and offers
many opportunities, Abdul Rahman says.
The value of undergoing investments
in medical projects and health care is
currently amounts to US $5 billion for
government projects, and about US $1
billion for private sector projects.
I believe the sector has big potential

to grow because of many factors
including the populations growth and
the demographic characteristics of
the community such as increasing the
number the elderly, and the changing
lifestyle that resulted in what called
luxury diseases such as diabetes
and obesity, he said. These factors
confirm that the investment in health
institutions is safe and profitable.
Dr. Guenbaz stresses that the
establishing of large investment
companies in the private health is
an urgent need. Health Investment
companies will cause a major shift in
the health private sector and health
networks across the Kingdom and
will lead to the integration of health
services, he said.
The gap between supply and demand
mainly depends on the strategy of the
Ministry of Health and its future vision,
he said. As I mentioned before, the ratio
of beds per 1,000 people is 2.17, and
the ministry must determine its targeted
percentage. Personally, I think a three
to 3.4 ratio of beds per 1,000 people is
reasonable. If so, we need to increase
the number of beds in the Kingdom to
approximately 75,000 beds. We now
lack 20,000 beds, which could cost SR
25 to 30 billion.
To reach this ratio, the ministry needs
to develop a five-year or a ten-year plan
and distribute the share of the private
sector to be almost one-third, according
to the size of this sector at present, Dr.
Guenbaz said. This means the private
sector can participate in approximately
SR10 billion apart from the costs of
runningthe health facilities.
31
Interview
commit themselves to the standards
and values of the health system if
they want to operate in this vital
sector.Achieving profit is essential
for the private sectors continuity
and success, as it allows more
developments and creates competition,
but all parties -- insurance companies
and service providers alike -- should
take into account the interest of the
beneficiaries as well.
Nasser Al-Subaie
Commitment to insurance standards and values is
an essential requirement for the continuation and
success of all insurance parties
By Mustafa Shihab
The cooperative health insurance triangle in Saudi Arabia

consists of the private health insurance sector, insurance
companies and service beneficiaries -- in addition to
employees working in the private sector.
As part of our continued efforts to gain

insight into the insurance industry and
shed light on needs and expectations
of all involved parties, The Council
(CCHI) magazine has committed
itself every month to conducting
insightful interviews with a personality
representing one of the three parties, as
well as insurance regulators.
This month, we met with Nasser Bin
Sultan Al-Subaie, a CCHI member,
deputy chair of Mouwasat Medical
Services Company and the President of
its Executive Committee.
During this interview,Al-Subaie stressed
a set of controls that all insurance parties
-- particularly insurance companies
and health services providers -- must
commit themselves to, admitting the
existence of polarization between the
two
parties.He also expressed
his satisfaction with the
cooperative health insurance
system and its positive impact
on the development of medical
services in the Kingdom.
32
Achieving profit is essential for the private

sectors continuity and success, as it allows more
developments and creates competition
Health insurance companies, hospitals
and health centers do not seem to
work well together. What is the main
cause of this tension?
There is no doubt that the implementation
of the cooperative health insurance
system in Saudi Arabia has had a positive
impact on the development of medical
services.This impact will be clear to all
in the near future, after establishing the
basic rules of the system, which we hope
will benefit all involved parties. We also
need to create regulatory bodies to
ensure that all parties are carrying out
the responsibilities entrusted to them.
With regard to the tension between
the parties, I agree with you, the tension
exists. I encourage all parties to work
together to solve their differences
because this polarization causes a
delay in reaching the main objectives
of establishing the health insurance
system.Health
service
providers,
including hospitals and medical
centers, need to adhere to the Ministry
of Healths laws, the cooperative health
insurance regulations and their medical
ethics. They should carry out the
responsibilities and duties assigned to
them, including:
Employ qualified medical and
administrative staff
Develop health systems and

medical equipments
Benefit from the latest technologies
in the managing their medical
facilities
Implement quality, oversight and
accountability standards
Control their operating costs
The insurance companies should
also adhere to the regulations of the
cooperative health insurance system,
and should make sure they have the
necessary regulations, qualified human
resources to meet the needs of service
providers and beneficiaries. The health
insurance beneficiaries as well must
understand the limits and conditions
set forth in their insurance policies
and should not overuse their insurance
cards, as this will have a negative impact
on all parties.
Although the business dimension
is an indispensable foundation for
the continuity of insurance services
and health services in general, many
agree that the desire for profit has
overshadowed the human aspects of
the health insurance system. What do
you think?
I strongly believe that all parties must
Is it true that some health service

providers have turned patients into
field tests, asking for unnecessary
medical tests in order to raise the
value of the invoice?
I do not think that is the case. Surely,
if service providers are abiding by
regulations and quality systems, this
will never happen. I would say that
even if some medical service providers
do that, it would be difficult for them to
continue such practices in the future, as
human and moral standards reject this.
I think we need to restudy the price of
the insurance policy to match the cost
of heath services in light of the rise of
the operating costs.
Why do insurance companies refuse to
agree on certain medical tests if they
are important for the patient?
Based on my experience, insurance
companies do not reject any needed
tests. They have no right to reject any
medical services needed by the patient.
Some insurance companies, however,
postpone medical tests for their patients
until the release of initial tests or until
they have all the medical information
about the patient.
Many complain about a shortage
of hospitals and health centers that
provide health insurance, and some
even called for the establishment of
new health services companies
I agree with them, I believe the private
health sector needs more hospitals,
clinics and health centers to meet
the continued increase in demand
for health services. Those who are
thinking of investing in new health
facilities must take into consideration
other remote areas, not only focusing
on major cities. There is also a need
to develop the health and medical
services continuously.
33
To what extent has the Council

succeeded in managing the tense
relationship the insurance parties?
The cooperative health insurance
system is the best way to provide quality
health care for all. It is no doubt a noble
humanitarian work, and a civilized step
towards providing healthcare to our
citizens and residents. CCHI has leaded
the efforts to establish a cooperative
health insurance system, which aimed
to organize the relationship between
all the insurance parties and preserve
their rights.
CCHI strives to improve this
relationship by introducing a series of
sophisticated programs, such as the
electronic data interchange system,
which will ensure full commitment to
the councils regulations. The council
will also ensure that all parties are
committed to insurance standards and
are applying the latest technologies,
such as the Australian Modification
(ICD-10-AM) system, to classify
diseases and health conditions, and
the International Bar Coding system.
Insurance parties must also provide
CCHI with independent reports on the
volume of financial transactions, type
and timing for insurance taxpayers and
service providers.
How successful is healthcare system
in the Kingdom compared to other
countries in the region and the world?
As you know, the biggest burden of
providing health services rests on the
public health sector represented by the
Ministry of Health, which spares no
effort in providing quality services, in
addition to major hospitals, specialized
governmental
organizations
and
other stakeholders. We have highly
specialized medical experts in Saudi
Arabia with excellent medical services
and equipments that are in line with
the most sophisticated health services
in western countries.
The health sector in the Kingdom is
promising: It represents 20 percent of
the volume of the provided services that
is why we were able to implement the
health system on non-Saudis so quickly.
The health sector is one of the largest
sectors in the Kingdom and it is fully
committed to provide the best services
for both Saudis and non-Saudis.
34
Kingdom of Saudi Arabia

Council of Cooperative Health Insurance
General Secretariat
Alshafa Street, King Fahd Road.
Fax: 4870071
P.O.Box: 94764 Riyadh 11614
Customer Service Center (IVR)
Tell us more about Mouwasat

Medical Services Company?
Mouwasat Medical Services Company
started its operations in 1975 through
the establishment and operation of
the first clinic in the city of Dammam.
We then set off a number of hospitals
and clinics in Dammam, Riyadh,
Jubail, Medina, Qatif and Al Ahsa.
The companys management strives
to extend its network to cover major
medical cities in the Kingdom through
its five-year strategic plan.
Currently, we have 400 clinics and
850 beds.We maintain the highest
levels of quality and efficiency
in our medical buildings and we
carefully choose our medical and

administrative staff. We also apply
latest technology systems in managing
our facilities.Most of our facilities are
registered with international bodies.As
the deputy chair of Mouwasat Medical
Services Company and the President
of its Executive Committee, I work
hard to achieve the firms strategic
goals through an integrated system of
regulations and procedures approved
by the Board of Directors.
We need to restudy the price of the
insurance policy to match the cost of
heath services in light of the rise of the
operating costs.
35
Tawuniya Captures 43 Percent ofTotal Premiums
The financial results of Saudi

insurance companies in 2009
An analytical study of the insurance

sector in Saudi Arabia, according to
the announced financial results for
2009, revealed that three insurance
companies -- Tawuniya, Medgulf and
Bupa -- had taken control of more than
75 percent of total insurance premiums
in 2009. The remaining listed companies
only contributed to the remaining 25
percent.
According to a study prepared by the
Argaam website, Tawuniya -- the largest
and oldest insurance company in Saudi
Arabia -- succeeded in increasing its
profit by 341 percent to hit SR296.4
million (SR5.93 per share) by the end
of 2009 compared to the net profit for
the same periodin 2008. Tawuniya
also took control of 43 percent of total
insurance premiums. (See table)
Period
2009
Tawuniya
Change
2628
4035
Medgulf
--
+ 54 %
1849
1205
Saab Takaful
-213
389
Malath
176
363
Allianz SF
78
338
IAIC
204
217
Arabian Shield
--
184
Walaa
--
142
131
Alahli Takaful
116
Saudi Indian
12
83
Al-Ahlia
--
83
Sanad
Last year was a tough year for many economies around the round. The
world financial crisis impact overshadowed the regions capital markets
because of their link to the global markets, and because of the psychological
ramifications that usually come with such crises.The situation negatively
affected a number of companies operating in the Kingdom of Saudi Arabia,
including insurance companies, as their financial results for 2009 show.
36
Total insurance premiums (million riyal)

2008
Bupa
By Said Al Hasanieh
Reinsurance
Company
(Medgulf)
achieved a profit of SR146.5 million
(SR1,83 per share) in 2009compared
with a profit of SR5.3 per share in
2008. Bupa Arabia for Cooperative
Insurance Company, which was newly
listed in the Saudi market, achieved a
profit of SR58.2 million (SR1.46 per
share) in 2009.
Saudi IAIC Cooperative Insurance
Company reported a net profit of
SR11,757,00 compared to a loss of
SR38,430 in 2008. Earnings per share
amounted to SR1.18 versus a loss of
SR3.84 in the previous year.The excess
of insurance operations achieved
SR19, 862,000, without counting the
investments net from the results of
operating income against a deficit of
SR10,040,000 in the previous year.
SAICO
Saudi Re
ACIG
Total
--
74
51
--
3325
9412
---
+ 83 %
+ 106 %
+ 333 %
+6%
---
+ 2520 %
+ 1833 %
+ 592 %
---
+ 1600 %
--
+ 183 %
Source: Tadawul Website
Profits and losses

Financial results for Saudi insurance
companies, which were published on
the Saudi stock exchange, Tadawul,
reveal
that
the
Mediterranean
andGulfCooperativeInsurance and
The net profit for Malath Cooperative

Insurance and Reinsurance Co has
reached SR7,228,000, against a loss
of SR59,207,000 in the previous
year.Earnings per share reached
SR0.24 versus a loss of SR1.97 in the
previous year.The excess of insurance

operations has achieved SR10,542,000,
without counting the investments net
from the results of operating income
against a deficit of SR38,586,000 in
the previous year.
According to the Tadawul website, the
Arabian Shield Cooperative Insurance
Company reported a net profit of
SR8,095,000, compared with a loss
of SR3,733,000 in the previous year.
Earnings per share amounted to SR0.40,
compared with a loss of SR0.19 in 2008.
The Al Rajhi Company for Cooperative
Insurance recorded a loss of SR28.7
million in 2009, the loss per share
amounted to SR1.44 riyal.
The Saudi United Cooperative Insurance
Company, or Walaa Insurance,reported
a net loss of SR26,832,000 after taking
into account the value of Zakat, compared
to a net loss of SR18, 970,000 in the
previous year, recording an increase of
41 percent.The loss per share reached
SR1.34, compared with SR0.95 in the
previous year.
Saudi Fransi Cooperative Insurance
Company, or Allianz Saudi Fransi, reported
a net loss of SR10,713,000 during the fourth
quarter, compared to SR5,878,000 for the
subsequent quarter last year, achieving
an increase of 82 percent, compared to
SR3,251,000 for the previous quarter, an
increase of 230 percent.
The deficit in insurance operations,
without counting the investments net from
the results of operating income during the
fourth quarter, amounted to SR11,724,000,
against a deficit of SR29,477,000 for
the subsequent quarter of previous year,
recording a decline of 60 percent.
Sanad Insurance & Reinsurance
CooperativeCompany
reported
a
net loss of SR3,120,059 during the
same period, compared to a net loss
of SR4,664,221 for the subsequent
quarter last year, recording a decline
of 33.1 percent, versus a net loss of
SR3,744,863 in the previous quarter, a
decline of 16.7 percent.
SaudiIndian Company forCooperative
Insurance Co reported a net loss of
SR5,008,000 during the fourth quarter,
compared to a net loss of SR2, 825,000
for the subsequent quarter last year,
recording an increase of 77.27 percent,
versus a net loss of SR5,192,000 in
the previous quarter, a decline of 3.54
percent.
37

The Gulf Union Cooperative Insurance
Company reported a loss of SR1.9
million during 2009, while Al Ahli
Takaful Company reported a loss of
SR5.2 million during the year. Al Ahlia
Insurance Company reported a loss of
SR31 million and the Allied Cooperative
Insurance Group (ACIG) reported a loss
of SR23.7 million for the end of 2009.
Al SagrNational Insurance Company,
one of the latest insurance companies
in Saudi Arabia, reported a loss of
SR2.32 million in 2009. There is no
comparative data for the same period of
last year 2008. SaudiUnited Cooperative
InsuranceCompany recorded a net loss of
SR1 million, while ACE Arabia Cooperative
InsuranceCompany recorded a loss of
SR9.69.6 million. AXA Cooperative
InsuranceCompany achieved a profit of
SR1.13 million during the period between
June 2009 and December 2009.
Net insurance premiums in 2009
In terms of net insurance premiums,
three companies -- Tawuniya, Medgulf
and Bupa -- captured 84 percent of
the total insurance premiums in 2009.
The insurance company must pay
reinsurance premiums to the reinsurer.
These reinsurance costs must be
subtracted from gross premiums, and the
result equals net insurance premiums.
(See table.)
Net insurance premiums (in millions of riyal)

Period
2008
2009
1684
2530
Medgulf
--
1471
1205
Malath
-60
206
IAIC
164
188
12
148
Arabian Shield
--
88
81
Sanad
-3
77
46
63
SAICO
--
46
45
Al-Ahlia
39
Saudi Re
-0.6
16
0.2
ACIG
--
1978
6212
Tawuniya
Bupa
Allianz SF
Walaa
Saab Takaful
Saudi Indian
Al Ahli Takaful
Total
Change
+ 50 %
---
+ 243 %
+ 15 %
---
+ 2467 %
Company
Tawuniya
Health
Auto
739.7
644.0
2624.1
Malath
30.0
40.0
106.1
176.1
Allianz SF
16.1
61.8
77.9
Sanad
--
25.4
2.0
0.1
27.4
7.4
3.6
1.2
12.2
1319.3
785.3
813.2
2917.7
1240.4
Saudi Indian
+ 1133 %
TOTAL
Others
Total
Source: Tadawol Website
Net Written Premiums Distribution 2009 per sector (in millions of riyal)
+ 37 %
Company
--
+ 463 %
Health
Tawuniya
--
+ 2567 %
+ 2900 %
--
+ 213 %
Net insurance premiums (in millions of riyal)
Auto
Others
Total
1183.7
768.5
111.5
2063.7
1032.5
193.0
74.3
1299.9
Bupa
1205
--
--
1205
IAIC
16.3
168.2
3.6
188.1
Malath
42.5
79.5
23.2
145.2
Allianz SF
44.5
45.0
37.9
127.3
Sanad
42.1
32.9
13.7
88.6
SAICO
27.4
15.4
14.8
84.9
Arabian Shield
23.1
39.4
5.6
68.1
Medgulf
Health
Auto
Others
Total
2467.3
839.9
728.1
4035.3
Saudi Indian
18.1
23.0
5.8
46.9
1232.1
247.4
370.0
1849.5
2.9
29.3
9.4
41.6
1205
--
--
1205
Walaa
14.3
14.0
12.5
40.9
161.8
114.8
86.6
363.2
Al-Ahlia
3.0
13.3
16.3
Allianz SF
103.2
62.8
171.9
337.8
--
Sanad
0.9
50.6
32.8
223.8
--
0.9
140.4
--
IAIC
32.1
170.1
15.0
217.2
3652.4
1411.2
328.2
5419.2
Arabian Shield
55.0
72.8
56.0
183.8
Walaa
28.0
56.7
58.2
142.9
Saudi Indian
23.0
43.7
18.4
85.0
Al-Ahlia
46.2
15.2
21.5
82.8
30.3
15.8
27.5
73.6
Saudi Re
--
3.0
48.0
51.1
--
6.1
6.1
TOTAL
-5524.4
1692.8
1640.1
8857.1
Company
Tawuniya
Medgulf
Bupa
Malath
Gross Written Premiums

Distribution
The following tables show the distribution
of total premiums and net premiums,
according to companies and key sectors,
namely: health, auto and other sectors
(property, fire, freight and others).
Gross Written Premiums Distribution 2008 per sector (in millions of riyal)
SAICO
ACIG
Saudi Re
ACIG
TOTAL
Promising Future
Most insurance companies listed on
the Saudi Stock Exchange were unable
to start generating profit. There are
several reasons for this, including the
lack of expertise in managing their
investments in times of crisisand the
volatility of the domestic and global
markets.Additionally,
the
Saudi
regulatory body requires insurance
companies to invest in short-term
investing instruments such as Murabaha
and low-risk rents, which leaves
insurance companies with very low
revenue due to low interest rates in the
domestic banking sector.
Moreover, most insurance companies
are newly established, a stage that
requires many costs and expenses. They
do not expect to achieve high profits
and need three to four yearsbefore
they begin to generate revenues. With
time, they will build a strong customer
base and attract more beneficiaries,
spreading their risks, before beginning
to achieve profits.
Even still, insurance experts remain
optimistic about the next phase as
they expect positive results for patient
companies -- many of which are
expected to begin recording strong
results in the second half of 2010.
The future of cooperative insurance
is promising. Experts believe that this
sector will succeed in presenting itself
as a vital product to the citizens and
residents of Saudi Arabia. They expect
to see more mergers and acquisitions in
the coming period.
Net Written Premiums Distribution 2008 per sector (in millions of riyal)
Company
Tawuniya
Health
694.5
667.9
Auto
124.4
Others
Total
Malath
19.4
3.9
24.5
47.8
Saudi Indian
0.3
3.6
4.1
8.0
Allianz SF
2.4
1.3
3.7
Sanad
--
2.5
0.2
0.004
2.7
Total
719.1
675.6
154.3
1549.0
1486.8
38
39
Tech World
Regulate traffic and increase productivity
A new system to detect rates of

traffic jams achieves momentum
By Yasmeen Hinnawi
When we combine hard work, determination, and ambition with

creativity and sound support, anything is possible. That perfectly
applies to the Saudi inventor Abdul Rahman Al Ohali, who used his
work in web design and his belief in innovation to come up with a
unique system to detect traffic jams.
In recognition of his talent, Al Ohali received the silver medal
at the 37th Geneva International Exhibition of the inventors. He
represented a Saudi Arabia that strives to become a knowledge
society and economy and to compete with world leaders in
his field.
Turning point
Like other residents of the Kingdom of Saudi Arabia, Abdul
Rahman Al Ohali experienced traffic jams on roads and at
markets, especially around the Grand Mosque in Mecca, the
Prophets Mosque, and other holy places. He witnessed how
traffic jams and accidents prevent many employees in the
government and private sector from reaching their offices on
time. But he did not deal with the situation passively. Quite the
40
contrary, the congestion ignited his hidden talent and was a

turning point in his life.
He started to study how developed countries deal with
congestion. Most countries inform passengers about traffic via
radio or with roadside electronic screens, or via traffic signals.
Al Ohali found these methods unfeasible because of the high
cost and the negative impact on the driver, who may lose his
attention to the road while listening to the radio or reading the
electronic screens.
After spending a considerable period of reflection and
refinement, Al Ohali came up with an electronic device that
works day and night and shows the road conditions before
the drivers arrive to their destination in order to allow them to
selectthe proper and less crowded road.
Simple technique
When asked about the fine structure of
the device, Al Ohali said that the device
is simply a light indicator graded from
zero to 100. If the light is green, this
means the road is passable and free of
constraints. If the light is red, this means
the road is crowded or closed. For
example, when the road is 70 percent
crowded, the device will be illuminated
in red light and index will rise to 70, he
said. The remainder (30 percent) will
be illuminated in green, and so on.
To use this device easily, the road
should be divided to points (1, 10, 20,
30 ... 100). If the road was passable
and the traffic is smooth, the indicator
will be illuminated in green. If there
is an accident at point 30 causing a
traffic jam, the indicator will glow red
at that point (30), as a result, the driver
can choose another route to reach his
destination, i.e. point 20.
Al Ohali says that the device could
be very easy controlled from a traffic
operations room, which could be
located along main roads, or at a traffic
patrol, which would be equipped with
a computer or wireless device to a send
pulse to the device.
We can manage the device as well as
by modern sensors or cameras placed
on roads that are automatically linked
to the operating room, or by placing
a counter to count each entering car
at a specific point, Al Ohali said.In
return, the number of cars that come
out from this point will be deducted.
I believe that this method is more
reliable and accurate than others
systems.
Great advantages
Traditionally, each new technology has
set positive and negative specifications.
But according to Al Ohali, it is all about
starting over where others have ended.
When you come up with a new
technology, you should study previous
experiences and try to overcome their
mistakes and use existing technologies
at the best possible way, he said.
You must also keep in mind that your
technology should make people life
easier.
Thanks to God, my device enabled
me to achieve most of what I aspire to it,
especially after winning the admiration
of many local and global organizations.
When you come up with a new technology, you

should study previous experiences and try to overcome
their mistakes and use existing technologies at the best
possible way, Al Ohali said.
I encourage inventors to continue their
march for the servant of humanity.
He says the device is lightweight and low
cost and can be easily used and repaired.
He also says the devices methods are
simple, enabling everyone -- literate and
educated, young and old, Arabs and
foreigners -- to use and understand it.
Another advantage to the device, he
says, is the fact that it could be used
in humanitarian situations,enabling
passengers to free the road for
ambulances in no time, and to help the
ambulance drivers as well to choose the
proper way to reach their destination.
Supporting inventions and
innovations
In addition to targeting all sectors of
society and placing the humanitarian
situations in the hierarchy of priorities,
Al Ohali took did not want to crowd
the streets with big and ugly devices.
He says his design could be installed
in several forms on the main roads and
minor streets.
As they say, cities prosper by the

prosperity of its inhabitants. Saudi Arabia
strives to grant its citizens and residents
a higher standard of well-being. The
countrys strategic plans have aimed to
support inventions and innovations that
benefit the general population.
King Abdul Aziz Institution is doing
just that striving to enhance creativity
and harness talent by supporting the
building and the development of a
creative environment that enables
talented individuals to make a use of
their talents to serve their country. King
Abdul Aziz Institution provided Al Ohali
and his partners all the needed support
and facilities to obtain a patentfor his
invention.
Al Ohalis device will surely help
people feel informed and more relaxed
while driving, while protecting against
accidents and deaths. It will also regulate
the traffic across the country through the
exploitation of unused roads, thereby
helping relieve overcrowding, decrease
delays and increase productivity.
41
Lifestyle
Create Positive Energy

With Feng Shui
is the bedroom, which is supposed to

be a place of comfort and renewable
energy. In many cases, however,
people instead wake up feeling
fatigued, stressed, and unexcited to
start their day. According to Feng Shui
principles, people should get rid of any
electronic or electromagnetic devices
in their bedrooms to boost the positive
energy and increase their productive
capacity. In many cases, people who
have changed their bedrooms dcor
and have created balance and harmony
between the pieces of furniture felt that
their mood improved naturally.
Transform your home and life with an ancient

Chinese method of room organization
Dcor designers and specialists have long

searched for new concepts and creative
designs to achieve the highest levels of
admiration and satisfaction from their
customers, and to give a touch of magic
to their clients houses. Many of them,
however, focus only on designing and
creating beautiful decorations. In doing
so, they overlook a crucial element: the
psychological and spiritual health of the
houses owner.
Studies indicate that home decor
involves more than pretty colors.
Choices we make about how to
arrange our rooms, some researchers
say, actually affect our psyche and
mood. Classical Feng Shui -- translated
literally as wind-water in English -can help designers create fresh energy
in a house, minimizing the negative
effects of certain areas while enhancing
the productive areas.
42
Feng Shui is the art and science of understanding nature

in order to design houses and workplaces that blend
with the environment instead of clashing
What is Feng Shui?
Feng Shui is an ancient science
developed 3,000 years ago in China
and adopted later by the Elders of Tibet.
It focuses on how to arrange furniture
to balance the energies of any given
space in order to assure the health,
happiness and good fortune of the
people inhabiting it.
Feng Shui is the art and science of
understanding nature in order to design
houses and workplaces that blend with
the environment instead of clashing.
Feng Shui aims to help people live in
harmony with the world by promoting the
flow of positive energy and neutralizing
or avoiding negative energy.
Feng Shui focuses largely on human

perception, affecting the way we see,
hear, smell, and touch. Everything in
the house, according to Feng Shui, has
a significant impact on an individuals
physiological reactions towards the
outside world and towards the elements
of Feng Shui: fire, earth, metal, water,
wood.
People cant get better physically
unless they go through a process of
resolving mental, spiritual, financial
and emotional issues, according to
certified psychotherapist and Feng
Shui master Esther Yang. The best
example of this is the headaches and
physical pain that afflicts some people
who cannot find a curein chemical

medicines. Changing their home dcor
could help a lot in these cases.
False propaganda?
Despite positive results shared by
people who have altered their lives
according to Feng Shui, scientists
are generally sceptical of a real
connection between home dcor and
an individuals physiological health,
claiming that results from Feng Shui
are not necessarily based on tangible
scientific grounds.
But even if Feng Shuis theories may
lack scientific proof, it is somewhat
intuitive that a well-designed home
and workspace would lead to feelings
of well-being. There are many people,
after all, who strongly believe in the
ability of Feng Shui to renew life and
increase levels of optimism.
One room that Feng Shui focuses on
Principles of Feng Shui

According to the principles of Feng
Shui, every home is divided into nine
corners, or areas. The ninth corner is
located in the center of the home and
is connected to health. If this area is
clutter-free, with few large objects and
little traffic, energy will flow freely and
inhabitants will feel better. If, on the
other hand, the home is crammed with
bulky furniture, the positive energy will
be hampered and so will health.
The principles of Feng Shui can be
practiced by all segments of society,
as adopting this art is inexpensive,
and there is no need to buy expensive
furniture.
Feng Shuis free-and-clear policy
extends to the bedroom and kitchen as
well. How can we welcome our guests
into a dining room that is crammed with
knickknacks and bulky furniture? How
can we enjoy cooking, if the kitchen is
full of unnecessary tools and devices.
The kitchen should also be clutter-free,
warm and inviting.
Add natural plants around the

house to create a distinctive
atmosphere to prevent the leakage
of negative energy. Plastic plants
give the opposite effect
Use warm colours such as beige,
blue and light pink
Benefit as much as possible from
the natural light to create a warm
and intimate atmosphere and
avoid the use of fluorescent lights
Do not put mirrors in the
bedrooms, because they create
negative energy and cause
insomnia sleep interruption. Put
them in living and dining rooms
Close the bedrooms doors
because this simple step makes
the bedroom an intimate and very
special place.
Traditional Chinese Feng Shui has
evolved and influenced many lives
around the world. While changes have
been made to the practice of traditional
Feng Shui, it has remained true to its
directives through the last thousands
of years. It is your choice to believe or
doubt the Feng Shui science, but keep
yourself open to new ideas and theories.
You wont lose anything in the end.
Feng Shui experts have a set of simple

instructions to make our homes quieter
and fresher:
43
Report And Analysis
GCC Takaful Growth Rate Continues Rising
The regions insurance growth rate

sounds impressive. However, it is not
nearly as large as it should be, said
Santino Saguto, managing director of
Value Partners Dubai office. Insurance
penetration, for example aggregate
insurance premiums over GDP, stands
at one percent for the GCC countries.
In contrast, the developed insurance
markets in the US and Europe register
penetration rates in the range of five
to 15 percent.
Saguto noted that Saudi Arabia has a
particularly low penetration e of just
0.6 percent, a number that is dwarfed
in absolute size by its smaller neighbor,
the UAE, which has a penetration rate
of two percent, he said.
Value Partners report also gave
an insight into the relative strength
of insurance classes, with motor
insurance being the strongest, followed
by health and property. Saguto says
life insurance was particularly weak,
accounting for only 15 percent of
total insurance premiums, compared
to around 60 percent in Europe.
The GCC residents seem to buy
insurance products only if they have
to. It is not by coincidence that
mandatory third party motor insurance
is the leading class, Saguto said.
All other non-life insurance classes,
including health, are almost 100
percent corporate business...GCC
nationals expect their governments to
cover most risks for them, the majority
of health care is free and provided by
the government, and home loans are
often state-guaranteed, without the
need for building insurance.
The report found severe supply-side
restrictions in the insurance market,
44
as the business is still dominated

by local insurers, whose market
share ranges from 77 percent in the
UAE to as much as 90 percent in
Qatar. Value Partners also identified
a number of major normative and
regulatory discontinuities that are
expected to provide a strong impetus
for the growth of GCC insurance
market, including regulatory reform,
the growth of Takaful insurance, and
the introduction of obligatory health
insurance.
Takaful, a Shariah compliant form
of insurance, is a system based on
the principle of mutual assistance
(taawun) and voluntary contributions
(taabarru). According to those
principles, a group of participants
shares risk collectively and voluntarily,
while insurance shareholders are
entitled to a fixed remuneration.
Takaful insurance, according to the
study, will still grow its contribution
to the sector. Although its share of
the insurance market is currently low,
accounting for just 10 percent of overall
premium volumes in theGCC, many
insurers -- even Western companies -have invested in this growing market
by establishing Takaful operations.
Among the insurance classes, the
report said, health insurance has the
best growth prospects, as governments
are expanding mandatory insurance
for expatriates and, in some cases,
even to nationals. Furthermore, GCC
countries have a very significant
expatriate population, ranging from
around 30 percent in Saudi Arabia to
85 percent in the UAE.
In this growth scenario, new
approaches to distribution are
expected to provide more aggressive

and competent sales, Saguto said.
Trends to watch out for include
business-to-business to enterprise
models, such as worksite marketing,
where employees can buy voluntary
insurance products directly at their
worksite through payroll deduction.
Banks will enter the sector as well,
bundling insurance with financial
products.
GCC Takaful industry to grow
at healthy pace
The GCC Takaful industry is bucking
the trend in the broader economy
and will continue to grow at a
healthy pace, says Alpen Capitals
GCC Takaful Industry Report, which
is expecting the Takaful industry to
continue to grow in 2010 faster than
conventional insurance.
While there are reasons to remain
cautious about economic growth
in the near term, we expect the
Takaful industry to continue to grow
faster than the non-oil GDP for the
foreseeable future, said Mahboob
Murshed, Managing Director at Alpen
Capital.
Murshed says the key factors
underpinning growth potential are
regulation, favorable demographics,
growing
affluence,
growth
in
organized savings and Islamic
finance, greater availability of Takaful
and Islamic finance products and
changing consumer habits.
The report sheds more light on the
experience of Saudi Arabia, which
was among the first GCC countries
to mandate medical insurance
By Said Al Hasanieh
Insurance premiums in the GCC rose by

28 percent in 2009, to US$10.6 billon,
according to Value Partners, a managementconsulting outfit, which noted that the
insurance premium growth in the GCC
region far outpaced the world average of
3.4 percent in nominal dollar terms.
45
Report And Analysis
for expatriates in January 2006, a

mandate that was later extended to
Saudi nationals.
As a result, health insurance rates
in the country have more than tripled
since 2006, reaching SR4,805 million
in 2008 and accounting for 44 percent
of total insurance premiums. All other
GCC countries are either planning to
or have already taken initiatives in the
same direction.
The report notes that Saudi Arabia
is the largest market, accounting for
approximately 79 percent of gross
Takaful contributions in 2008. The
Company for cooperative insurance
(Tawuniya) is the largest player, with
roughly one quarter of the GCC
market.
Over 30 new Takaful companies
46
The Takaful companies,

according to Alpen
Capitals report, grew
at an average of 26.5
percent in 2007 to Q3 of
2009, outperforming the
conventional companies,
which grew by 19.2
percent
have been established in the GCC

countries in the last three years, with
a total paid-up capital in excess of
US$ 2 billion. This includes Saudibased companies that previously
conducted business in the country
under a conventional structure, but
excludes new Takaful windows.
Medgulf reported gross contributions
of US$272.6 million in the first half of
2009, its first year of operation as a
Takaful player, making it the second
largest Takaful player in the GCC after
Tawuniya.
The Takaful companies, according
to Alpen Capitals report, grew at
an average of 26.5 percent in 2007
to Q3 of 2009, outperforming the
conventional companies, which grew
by 19.2 percent. The average combined
ratio for the Takaful players was 89.4

percent in the first nine months of
2009, compared to only 73.3 percent
for their conventional peers.
While insurance is one of the fastest
growing sectors in the Middle East
economies, the industry remains
relatively small and underdeveloped.
The Middle East and Central Asia
accounted for only 0.7 percent of the
global insurance market. The relatively
small size of the Middle East insurance
industry is a reflection of a low average
insurance penetration of only 1.4
percent, compared to a global average
of 7.1 percent.
Life insurance premiums in the
Middle East and Central Asia grew at
a combined average growth rate of
six percent in 1998 to 2007 and 9.3
It is worth noting
that life insurance
accounted for about 58
percent of all insurance
products sold globally
in 2008, compared to
only 26 percent in the
Middle East.
percent in 2008, the report says. The

results from the developed world show
that non-life insurance grows faster at
the early stages of the development of
the insurance industry, whereas the life
insurance industry develops at a later
stage.
It is worth noting that life insurance
accounted for about 58 percent of all
insurance products sold globally in
2008, compared to only 26 percent
in the Middle East. Total insurance
premiums in the Middle East and
Central Asia grew 4.7 percent in 2008,
compared to a decline of two percent
globally.
The report expects the Middle East
insurance industry to witness strong
growth on the back of rising penetration
levels over the long-term.
47
Around The World
BritishHealthcare:
Envied, Criticized, But Free for All

By Nathan Deuel
A universal system in Britain efficiently covers an

entire population, but critics say the program fails
to adequately accommodate complex illnesses
such as cancer
In Britain, healthcare is believed to be

a fundamental right to which every
citizen is entitled. Coverage provided
by the countrys National Health
Service (NHS) -- formed by legislative
decree more than sixty years ago -- is
so automatic and non-discriminating
that even men or women who have just
arrived in-country are entitled to care.
(Some English lawmakers are critical of
this openness, and call non-Britons who
receive care healthcare tourists.)
Inside and outside the country,
Britains healthcare system is held up
48
by pro-private market advocates as

an example of what happens when
healthcare is run by the government
-- results argued to be both good and
bad. Critics, for example, cite figures
for cancer treatment, where Britain
lags behind the United States (U.S.) in
terms of success rates. But in Britains
defense, experts point to the countrys
positive numbers for preventative care,
infant mortality rates and an overall
healthy population -- combined with a
comparatively lower average cost per
patient.
Whatever one might argue about

Britains national health system, any
discussion must begin with basic facts:
The NHS is a one of the few healthcare
programs on earth -- joining Canada
and Taiwan, among others -- run
entirely by the government, the socalled single payer. What this means,
of course, is that the real money comes
from individual taxpayers.
Its never easy to take a citizens money,
and Britain doesnt do so lightly. What
remains to be seen, however, is how well
a public commitment to care measures
up against a system like Americas,

where private entrepreneurship and
choice are prized above all else.
HISTORY
Healthcare in the United Kingdom
(U.K.) prior to World War II had been
a mix of private, municipal and charity
facilities. With peace having returned,
Aneurin Bevan, Secretary of State for
Health, was charged by the government
to propose a new system. After careful
research, Bevan recommended that
the way forward was a national system
rather than one operated ad hoc by
regional authorities. He argued that
a nationalized system of care would,
above all, prevent inequalities between
different regions.
Bevan soon proposed that each
resident of the U.K. sign up to a specific
General Practice (GP) as the point of
entry into a new, nationalized system.
Every citizen would have access to
any kind of treatment needed without
having to raise the money to pay for it.
In the run-up to the formation of what
would ultimately become the NHS,
doctors and conservative politicians
vehemently opposed the initiative,
arguing against federal control using the
same arguments heard today from profree market opponents of government
healthcare.
On July 5, 1948, the NHS was
established with a commitment to
three core points: that it meet the
needs of everyone, that it be free at the
point of delivery and that it be based
on clinical need, not ability to pay.
Scotland, Wales and Ireland now have
semi-autonomous services that cover
their own constituents, but Britains
core NHS remains much the same as
when it was founded.
ORGANIZATION
The English NHS splits the country
into 10 territories, each with a health
authority governed by a board
consisting of appointed members, who
monitor public healthcare services,
primary care trusts and ensure that they
follow government policies.
According to reports, there are as many
as 152 primary care trusts throughout
the territories. They control as much as
80 percent of the NHS budget, and are
responsible for planning and managing
healthcare services in their localities.

Healthcare resources are, according
to reports, in turn distributed to the
primary care trusts based on a formula
determined by the size of the population
and weighted for age, additional need
based on socioeconomic status and
geographical variations in cost.
GPs, dentists, optometrists and other
providers of local healthcare are
almost all self-employed, and contract
their services to the NHS. Almost all
primary care services are delivered by
private physicians fully subsidized by
the government. Physicians are also
rewarded through a framework that
encourages quality care. Most hospitals
are publicly-owned in the U.K.
As of March 2005, it was reported by
the BBC that the NHS had 1.3 million
workers. This would put Britains
healthcare system in the top five largest
workforces in the world, next to the
Chinese Army, Indian Railways, WalMart and the U.S. Department of
Defense.
perk to workers and that a minority

of patients opt out of the NHS system
to receive their medical treatments
privately.
Private patients can choose their
specialists and avoid waiting lists for
non-emergency procedures. According
to Time, NHS patients wait an average
of about eight weeks for treatments
that require admission to a hospital,
four weeks for out-patient treatments
and two weeks for diagnostic tests.
While NHS patients have a choice of
hospitals, they cannot always choose
their specialist.
PROBLEMS
The NHS has a body called the National
Institute for Health and Clinical
Excellence (NICE) that determines
payment approval for new treatments
and drugs. One of the main factors
NICE considers is cost-effectiveness,
setting an agreed-upon threshold for
each new drug or treatment. NICE
rarely approves a drug or treatment
that costs more than $45,000 per life
HOW IT WORKS
Britain and most other developed
countries rank above the U.S. in most
health measurements. According to
Time magazine, Britains citizens have a
longer life expectancy and lower infant
mortality, and the country has more
acute-care hospital beds per capita
and fewer deaths related to surgical or
medical mishaps.
Britain achieves these results while
spending less per person on healthcare
than the U.S. -- about $2,500 per
person in Britain, compared with
$6,000 for America. The World Health
Organization (WHO) recently ranked
Britain 18th. The U.S. was ranked
37th.
All appointments with doctors and
treatments are paid through taxes, as
are almost all prescription drugs. The
maximum cost of receiving any drug
prescribed by the NHS is a little more
than 40 SAR. Students, the elderly and
the unemployed generally have these
fees waived, and in Wales, there is no
charge for any approved drug.
Beside the NHS, private health
insurance works in a similar way to
health insurance in the U.S. Time
reports that employers in Britain offer
private health-insurance plans as a
49
Around The World
July
2009
, Issu
e6
April 2009
, Issue 5
January 2009, Issue
ESTMENT
FINANCE AND INV
unity
Global crisis: imm
limited impact?
M Ele RO
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FUTURE
Created 60 years ago as a cornerstone
of the British welfare state, the NHS is
devoted to the principle of free medical
care for all citizens. Lately, however,
the system has been wrestling with
problems its founders probably didnt
even imagine. Chief among these
more modern dilemmas is how to
handle patients with complex illnesses
who want to pay for parts of their
treatment while receiving the rest free
from the health service. Using both
private and public care has long been
standard here for those who can afford
it. But recent situations have exposed
fundamental contradictions between
policy and practice in the system.
Consider the case of a woman well
call Mary Smith, who was diagnosed
with life-threatening breast cancer
several years ago. The NHS handled
her case, paying for mammograms,
drugs and consultations. Smith and her
doctor discovered an expensive new
drug that could prolong her life. The
drug wasnt as of yet covered by the
NHS, so Smith elected to pay on her
own, struggling to raise the 450,000
SAR. When the NHS learned she
would pay for this drug out of pocket,
it decided to charge her retroactively
for all the other work it had previously
paid for -- and would begin charging
her for any additional treatment. The
system simply couldnt accommodate
a patient electing to pay for some of
her treatment. (In other cases, patients
were permitted to combine public
and private approaches; Smiths
problem resulted from the
fact the new drug would be
administered simultaneously
with another drug, which was
being paid for by the NHS.)
Time reports that proposed
changes to the NHS
include
demand-side
reforms, such as increasing
patients choice; supplyside reforms, involving
provider
incentives;
increasing efficiencies by
setting quality standards
and monitoring compliance; and

transactional reforms that encourage
electronic medical billing. The
system, Time says, could also focus
on improving accountability through
transparency. Its not clear if any of
these reforms would necessarily give
immediate relief to patients such as
Smith, but they would no doubt be
helpful to many.
The world remains divided on the
subject of healthcare. The British
themselves complain about their
system but are also protective of its
existence. David Cameron, leader
of the countrys conservative party,
perhaps expressed the situation best.
One of the wonderful things about
living in [Britain] is that the moment
youre injured or fall ill -- no matter
who you are, where you are from or
how much money youve got -- you
know that the NHS will look after
you.
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tia
ten
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off s
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tor tie an
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alt pp en
He t o we
te en bet
iva tm p
Pr ves ge ga
in hu
50
called health tourists was more than

170 million SAR, which is just 0.03
percent of the NHSs total cost but is
still a significant figure.
s
n
io ie
pt an
ist nie
p
ex a
rs: c O m
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en o
A sura
m ec
In
ee c rs
gr ran ide
isa nsu rov
yd ni p
an e ice
M etwe erv
b ds
an
year gained. In other words, NICE does

not want the NHS to spend more than
$45,000 to extend a citizens life by
one year.
Most Britons seem to accept
NICEs rare rejections as a necessary
compromise to keep universal coverage
affordable in the face of rising healthcare costs. But NICEs decisions have
angered some doctors and patient
groups, particularly oncologists who
say they are unable to prescribe
expensive, life-extending cancer drugs.
There are numerous incidences of men
and women suffering or even dying as
a result of cancer or other complicated
illnesses while waiting to be approved
for a new procedure or expensive new
drug.
NICE uses what it calls citizens
councils to help it sort through difficult
ethical issues, and one of the decisions
the councils have made is that age
should not be a factor in the institutes
approval process. In other words, a
year of life should be considered as
valuable for a senior citizen as it is for
a boy. This is contrary to one popularly
held impression of the NHS: That it
discriminates against older citizens,
or that it maintains so-called death
panels. Both are simply untrue; the
NHS is as committed to young health
as it is for maintaining the lives of older
citizens.
Still, analysts agree that cancer
treatment is one area in which British
patients probably receive inferior
treatment compared to the average
American with health insurance. Those
in the U.S. who have comprehensive
health-insurance plans tend to have
access to a greater range of cancer
treatments, without waiting lists.
(Americans without health insurance,
meanwhile, face bankruptcy and
delayed or even denied treatment for
basic illnesses, let alone cancer or
more expensive maladies.)
Britains inclusiveness can be a
problem. Eligibility for NHS treatment
is predicated on being a U.K. resident.
But
non-comprehensive
checks
on patients at clinics and hospitals
generally allows people who ordinarily
reside overseas to travel to the U.K. for
the purpose of obtaining free treatment.
A report published in 2007 estimates
that the NHS bill for treatment of so-
CO
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15,000 copies
Distributed across the health insurance sector in the Kingdom
A quarterly magazine issued by

The Council of Cooperative Health Insurance
For advertising:
Tel: +966 (1) 462 3632
Fax: +966 (1) 4612966
Riyadh, Kingdom of Saudi Arabia
Email: gbcksa@gbcksa.com
Issue dates:
January
April
July
October
Travel & Tourism
Istanbul
A city bringing
cultures together
By Yasmeen Hinnawi
TheGrand BazaarinIstanbulis one of the largest

and oldest covered markets in the world. It
receives around half a million tourists every year
Istanbul is a unique city located on
two continents -- Asia and Europe -and divided by a famous strait called
the Bosphorus. Historyandmodernity
combinehere -- fascinating and
stylish -- mixing culture,historyanda
contemporary feel in a land where
ancient monuments sit comfortably side
by side with some of the worlds most
amazing new buildings. Istanbul is a
city of peace and Islam, a haven for
lovers of history. For non-conventional
tourists, it is a dream destination.
Istanbul is the most important and
largest city of Turkey. A dynamic
metropolis of12 million people, the city
is strategically located at the confluence
of the Black Sea, the Marmara Sea and
the Bosporus Strait.
Istanbul was the capital of Turkey for
over 1,600 years, and it was the glittering
capital of the Romanian,Byzantine
and Ottoman Empires, each of which
left its charming touches on the
citys art, architecture and heritage.
This combination gives the city its
exceptional atmosphere.
The charming city of Istanbul is home
to a plethora of historic buildings,
shops, cafes and a worldclass skyline.
52
Thousands of minarets pepper the

skyline, rising up on the hillsides from
the banks of the Bosphorus, making it
a sight that can be imprinted in your
memory forever.
Islamic Presence
Istanbul is known as the city of a

thousand minarets, because all the
Ottoman Sultans who ruled the city were
bragging about building new mosques.
Among these beautiful mosques is Sultan
Ahmed Mosquewith its six minarets,
the Sleymaniye Mosque, the largest
mosque in Istanbul, which reflects work
from four schools of archaeology, in
addition to the tomb of Sultan Selim I,
the founder of the Ottoman Empire, and
Bani Jame Mosque.
The Blue Mosque is probably
Istanbuls most famous landmark.
The architect used classical Ottoman
design and the numerousdomes and
half domescontinually draw the eyes
of the visitors skyward to heaven. The
minaretsset the Blue Mosque apart
from other mosques in Istanbul.
There are many private and
statemuseumshere that show the
cultural richness of the city. Among them
53
Travel & Tourism

At the heart of the market, there is a
huge hall called the Old Market, where
shopping is still as it was centuries
ago.Behind the Yeni Mosque, there is
the spice market, which sells cinnamon,
caraway, saffron, mint, thyme, and
every imaginable herb and spice. There
are thousands of things you can find and
buy in the Grand Bazaar; you may also
enjoy Turkish hospitality and windowshopping.
Istanbul sights
are the Museum of Turkish and Islamic

Art; the Aya Sofya Museum, known for
its remarkable serenity and elegance;
and the Museum of St. Irene. There
are manypalacesaroundIstanbul, and
among them are the Topkap Palace,
among the largest and oldestpalacesin
the world, and the Dolmabahce Palace.
A different kind of shopping
TheGrand BazaarinIstanbulis one of

the largest and oldest covered markets
in the world. It was built in the middle
of the 15th century and receives as
many as half a million tourists every
year. The Bazaar has 18 entrances, and
can be reached from 80 different streets.
It features more than 4,000 stores that
sell a wide range of products, such
as garments, silks, textiles, carpets,
handicrafts, traditional and modern
jewelry, gold, and ceramics.
TheGrand
Bazaarappeals
to
everybodys tastes and suits every budget.
The carpet shops are full of great pieces
with beautiful designs and superb colors.
The markets also feature a wide range
of Turkish handicrafts, such as handpainted ceramic, copper, trays, water
jugs, agate, pipes made from metal,
leather and canvas products, which are
all considered wonderful souvenirs.
54
TheGrand BazaarinIstanbulis one of the largest and

oldest covered markets in the world. It was built in the
middle of the 15th century and receives as many as half
a million tourists every year
If you want to shop and see the sights of

Istanbul, visit Istiklal Street, where you
will find historical sites, cafes, local and
international restaurants and fashion
brands.
Haji Abdullah restaurant is one of
the oldest restaurants in Istanbul. It
dates back to 1888 and is an excellent
place for lunch as their menu lists a
vast selection of Turkish and Ottoman
delights, including Kebab, Turkish rosto,
sharwarma, boric, Shishbarakand
Fattouch.
If you want to see the city in
untraditional way, take a cruise in the
Gulf of the Bosphorus before sunset to
enjoy the view of beautiful Asian and
European Istanbul. Youll see Turkish
extravagance, such as palaces and villas
that sprawl along the coast, and pass
under the Ataturk Bridge, the fourth
longest bridge in the world.
If you feel like visiting a place with quiet
atmosphere and romantic view, visit
the legendary Kiz Kulesi Castle. There
are nine islands in the Sea of Marmara,
not far from the city of Istanbul. Also
known as the Princes Islands, they
are usually used as summerhouses by

some of Istanbuls wealthier inhabitants.
The only vehicles to be seen there are
bicycles or horse and carriages -- the
most pleasant way of touring the islands.
You can also enjoy the beaches and
pine trees, moving between the islands
by ferries, which are only available in
the summer.
If you love fine arts then Istanbul is
the right place for you. The city offers
a selection of European classical music,
ballet, opera, folk dance performances
and theatres.
Many boaters visit Istanbul every
year, it being one of the only places in
the world that gives a chance to enjoy
the magnificent scenery and dive into
the a different period of history.Every
summer Istanbul holds an international
yacht race.
Yachts come from the North Sea, the
inland areas across Europe, the Rhine,
the Danube, the ports of the Black Sea,
the Strait of Istanbul and the ports of
Istanbul.You can also sail from the
Strait of Istanbul and pass under the
big bridges that link the two continents

with the beautiful gulfs of Princes
islands. Tourists can dock and enjoy the
quietness of this region.
Among the most famous hotels in the
city are: The Ritz-Carlton, Kempinski
Palace,
Hyatt Regency, Marmara,
Swissotel, Hilton, Kempinski, The
Point, Conrad, Brthylo Orosan Topkapi,
Ramada Plaza, Surmuli, Holiday
Inn, Okgan, Divan, Movenpick,
Sheraton,Elite, Classis, Bayutil, Acer
Brenneom, Ceylon Intercontinental,
Crowne Plaza, World Park, Marriott
Asia, Dedman and Great Sivaher.
These are in addition to the Polat
Renaissance, Radisson SAS Bosphorus,
Four Seasons, W, Turkey Grand, Titanic
Port, Princess Kamborgaz, Princess
Oortkoi, Sinar, Green Park Bostanci,
Lion, Midtown, Orient Express,
Romance, Tulip Pera, Oran, Klaas,
Venera, Hamadiya, Veronia, Konak,
Riva, Mitrobrk, Savoy, Elite Ward
Prestige,Otakoi Marina and Novotel.
Among the famous restaurants
in Istanbul are Chamdan and Mid
Point, which are both located near
Sheraton Hotel and Holiday Inn; the
Mediterranean (Okdns); Freja; Zarifi;
Hamdi; Haas; Kral; and Havana.
For swimming and water sports
amateurs, the most beautiful beaches of
the city are Killios on the Black Sea and
Janargik. Some of Istanbuls beaches are
free, while others require a fee of five
and ten Lira per person.
55
Two Opinions
Customer service
departments in
insurancecompanies:
Between
just and
justification
By Faisal Al-Shaya
Companies around the world that interact directly with the public
often have their own customer service departments, which help such
companies maintain close relationships with customers.In order to satisfy
their customers some companies erect separations between marketing
departments and customer service departments.
56
This picture is slightly different when it

comes to Saudi insurance companies,
as the marketing departments in the
Kingdom are also often responsible for
customer service.
Fawaz Al-Ghamdi, a photographer
for a company that contracts with
Saudi television, says that the presence
of customer service staff in hospitals
should mean that there is no need to
send treatment requests of beneficiaries
to insurance companies, which results
in a long delay in response. The
customer service employee should have
full authority, and be a link between the
beneficiary of the service, the insurance
company, and the hospital or health
institution, he said.
I do not know: Is the problem with
the customer service staff or with the
insurance companies, or maybe with
hospitals, clinics and health centers
that impede the work of the customer
service officer? Al-Ghamdi said.
Abdulaziz Al-Sharif, an employee at
the Arab National Bank, agrees with AlGhamdi and has personal experience
to back it up.
When I received my insurance policy,
one of the customer service employees
told me that treatment requests are
always approved even if theinsurance
company does not respond on time,
he said.
Al Sharif adds that the relationship
between insurance companies and
health centers should be one of
exchange, in which the insurance
companies put a number of hospitals
and health centers in the list of clients
benefiting from the service of health
insurance. Currently, personal interests
and courtesy enter in the middle,
causing delays in the progress of health
insurance in medical centres across the
Kingdom.
This is the role of customer service
employees who are located in the
hospitals, Al Sharif says. The customer
should benefit from the presence of
customer service staff of insurance
companies next to the reception staff in
health institutions to keep things clear.
The question, according to Fawaz AlGhamdi is this: Are all the insurance
companies the same? After signing the
policy, all insurance companies are the
same; they do not fully comply with
the policy terms of contracts, he said.
Abdulaziz AlSharif: The patient

should benefit from
the presence of
customer service
staff of insurance
companies next to
the reception staff in
health institutions to
keep things clear.
Fawaz Al-Ghamdi:
The customer service
employee should have
full authority, and be
a link between the
beneficiary of the
service, the insurance
company, and the
hospital or health
institution.
There must be some insurance companies that are

engaging more with their customers but the complexity
of the systems in some hospitals impedes such
commitment Al Sharif says.
That applies to big companies because
I dealt with them, I do not know about
micro-insurance companies.
Al Sharif says there is no need
to generalize. Not all insurance
companies are the same, he said.
There must be some insurance
companies that are engaging more with
their customers but the complexity of
the systems in some hospitals impedes
such commitment.
Both Al-Ghamdi and Al Sharif
agree that the rules of the Council for
Cooperative Health Insurance (CCHI)
stand wholeheartedly on the side of the
patient.
Samer Al Akrosh, Director of Customer
Service for Gulf Union Cooperative
Insurance Co., says that the problem is
not with one party in particular. The
disorder prevails among all insurance
companies, hospitals and medical

centers and even the beneficiaries of
the service alike.
Some beneficiaries do not read the
conditions that he signed on before, Al
Akrosh said. Therefore, in some cases,
a customer refuses to pay a required
percentage to receive the treatment.
Some do not know the details of the
contracts between insurance companies,
hospitals, health centers and clinics.
Al Akrosh attributes the inappropriate
behaviour of some of the beneficiaries
to tension because of their sickness
or the illness of one of their family
members.But Al Akrosh does not only
blame the beneficiaries of the service,
but also the hospital staff who must
know how to deal with patients, calling
upon their management to provide
training courses.
57
Insurance Forum
Insurance Forum
To send us your inquiry or suggestions,

please fill the form below and send it
to us via fax, email or postal address,
and e will get back to you as soon as
possible.
Below are answers to a selection of
questions we received from readers this
month.
What are the types of re-insurance

policies?
Muhammad Abdul Qader, Riyadh
The reinsurance operations are divided
into three main types: compulsory reinsurance operations, non-compulsory
re-insurance operations and contract
agreements re-insurance operations.
What function does a production unit

play in an insurance company?
Said Al Shahri, Hail
The production unit is responsible
for producing and issuing insurance
documents, and policies for various
insurance types. The person who works
in this unit is usually called an insurance
broker, representative or insurance
producer.
I want to know more about the types

of insurance
Fahmi Abden, Jeddah
The insurance sector is divided into
several sections: the first division, in terms
of shape, includes: cooperative insurance
(exchange) and commercial insurance.The
second division, in terms of practicality,
includes life and accidents insurance
and general property insurance. The
third division, in terms of basis, includes:
private and general insurance.The fourth
and the final division is in terms of
insurance type, includes compulsory and
voluntary insurance.
What are the major legal principles of

insurance?
Mustafa Al Amrabi, Riyadh
The Core Principles are: insurance
interest, good faith, the principle of
compensation,
beneficiary
rights,
participation and a proximate cause.
What is the organizational structure of
an insurance company?
Saleh Al Anzi, Tabuk
The structure of an insurance company is
divided into two sections: administrative
section and production section. The
administrative section is responsible for
all administrative issues, such as policies
issuance and inspection. The production
section is responsible for promoting and
selling insurance services and policies.
How can I buy an insurance policy,

and what happens if I lost it?
Fahad Al Mubarak, Dammam
If you wish to purchase an insurance
policy you should contact the insurance
company you want to deal with, and
the company will nominate one of its
representatives to meet with you and
provide you all the needed information.
He also advises you on how to choose
the right type of insurance policies that
meet your requirements.
In case of losing an insurance policy,
you have to inform your company or its
representative at the earliest time to get
a replacement.
Why is insurance so important, and

what are its main characteristics?
Abdulaziz Al-Dossari, Riyadh
The insurance sector helps:
Establish a principle of cooperation
between a group of people who are
exposed to the same risks and secure
their future by sharing these risks
Maintain a firms profit by providing
compensation for any possible accidents
and risks, such as fire, theft, and others.
Maintain production capacity
Extend and provide credit and loans
through insurance policies, thus
contributing to the economic growth of
projects
Insurance activity is characterized by:
Focus on cooperation principle
Signing a bonding contract between
the insurer and the insured
Collecting the insureds savings in form
of insurance premiums
Insurance is characterized by multiple
activities
Insurance policies are extended for
several financial periods; thus, it is
difficult to determine the outcome of
the activity
What is the difference between an
insurance representative and an
insurance broker?
Fathi Abbas, Jeddah
The
insurance
representative
is
responsible for promoting and selling
different types of insurance policies.
The insurance broker is the middleman
between the insurance company and
the client.
By Sayed Noori Mohammed
Dear Reader,
We are glad to dedicate this section, Insurance Forum, to you. In this section,
we welcome all opinions, constructive suggestions, concerns and questions
about the magazine, the cooperative health insurance sector and the topics we
cover in each issue. After receiving your comments, we will direct them to the
officials and specialists in the insurance sector to give you the correct and most
appropriate answers.
58
59
Pause
The best insurance policies on Earth

1) Comprehensive insurance:
This comprehensive insurance is against
the risk of life and its evils and sudden
calamities.
Prophet Muhammad peace be upon
him said, Those who said in evening in
the name of God who not compromise
anything with his name on earth or in
heaven, he is the knower and the listener
three times, did not suffer scourge until
the morning. Those who said it in the
morning three times did not suffer
sudden scourge until the evening.
2) Money and property insurance:
Be sure to give zakat -- giving money
for charity -- as it reserves and protects
your money.
Prophet Muhammad peace be upon

him, said, Whoever asks people for
their money so as to get rich, he is asking
for flames of fire. It is up to him to ask
for more or less (he should beware).
Prophet Muhammadpeace be upon
himsaid: Charity does not diminish
wealth.
3) Insurance for children:
To work good in your life and fear God
in your actions
God says in The Cave, As for the
wall, it belonged to two orphan boys in
the city. Under it, a treasure belonged
to them. Because their father was a
righteous man.
Ibn Abbas said, The treasure was
saved before their father was a good
man.
Ibn Munkadir said, God preserves the

goodness of a person of his son, and the
son of his on, and the son of his sons
son.
4) Health insurance:
Did you know that the daily pressures
and concerns affect human health and
make his body unable to resist diseases?
If a person has a calm heart and peace
of mind, his health will improve .
God says, Truly, it is by the
Remembrance of Allahthathearts find
rest. Keep remembering your God to
find peace in your heart, strengthen your
body, and complement your health.
People with a disorder that causes them

to kick or cry out during deep sleep
are more likely to develop dementia or
Parkinsons disease, a new Canadian
study suggests.
Researchers followed 93 Sleep
Behaviour Disorder patients aged 65
60
Question: Drinking tea after eating

reduces the absorption of iron, is
this true?

Answer: Yes, it is true; tea prevents
the absorption of iron. Milk, cola,
and chocolate as well prevent the
absorption of iron. Therefore, it is
advisable to drink these drinks after
at least two hours or an hour before
or after a meal; especially those
who suffer from anaemia, children
and pregnant women, and women
during their monthly period.
5) Insurance for sleep:

him said, If one recites Ayatul Kursi
before going to sleep, Allah will send an
Angel to come and look after you and
protect you till the morning.
6) Insurance against the devil:
him said, Who said when he emerges
from his home: In the name of God. I
put my trust in God. There is no power
except from Allah; the devil will leave
him alone.
Know your illness from the

way you sleep
Mysteries and Secrets
Did you know?
Sharp Definitions
Friend: the person who still loves
you even after he knows you well
Courtesy: the ability to make your
guests feel home, even when you
wish they are not actually there
Lovely Wife: the woman that ease
your troubles -- those troubles that
you would not face if you had not
married her
Bald: a person whose head defeated
his hair
Marriage: sweet at the beginning,
bitter in the middle, and tasteless at
the end
Pessimistic: a person who thinks that
one candle will never illuminate
darkness
Optimistic: a person who thinks it
is possible to see in the dark even
without a candle
An insurance
policy against
baldness
Italians who are worried about their
image are taking out insurance against
going bald.
The Telegraph said that the policy is
open to anyone between 15 and 70, of
either sex. The policy was developed by
an insurance firm and a chain of hair
care clinics, which ask for US $400
annual premiums regardless of how
much or how little hair the insured party
has.
The payout, capped at US $9600,
depends on the amount of hair lost
between a client first taking out insurance
and their final claim. Policyholders
also get two free check-ups a year and
a kit of products for healthy hair, the
use of which is not a condition of the
policy. Italy pays particular attention to
baldness, with widespread advertising
devoted to the problem.
The most vulnerable people are

those who cannot conceal their
secrets, the most powerful people
are those who can suppress their
anger, and the richest people are
those who are content with what
they have.
The builders of Koutoubia minaret
in Marrakech, Morocco, which
was built eight centuries ago,
blended (900) bag of musk with the
construction materials
Elephants spend 16 hours each
day eating, and can consume
136 kilograms of food per day, an
amount equivalent to eating 2,400
of hamburgers and drinking 160
milk shakes

years old and examined them for signs of

neurological disorders such as dementia
or Parkinsons disease. After five years,
researchers found the majority of them
developed either dementia or Parkinson
with 26 developing neurodegenerative
diseases.
61
Opinion
We meet again
Change is never easy. Usually, any attempts to change the attitudes of a
society away from an old system face stiff rejection. Doing so requires
a major effort to convince a community that the system they use has
problems and needs change. It is hard but not impossible. Gradually,
the society will start to understand a new systems benefits.
Indeed, the absence of an integrated system that is frequently updated
creates a gap between a developed system and prevalent systems,
which are usually unable to deal with the rapid changes of technology.
Accepting the status quo brings us back to the starting point in business
development, and this is our greatest challenge.
I am talking about the health insurance sector. The unregulated
insurance sector has created a vacuum and imbalances -- until 1420
AH, the year Saudi Arabia issued its first health insurance system,
followed in 1423by the issuance of the performance control system
over insurance companies.
Prior to implementing the health insurance system, the insurance
sector was chaotic, regardless of its contribution to the gross national
product and despite the fact that it was considered one of the most
influential financial sectors.
The insurance sector still requires great efforts from all concerned in
order to regulate, develop, organize and modernize this vital sector.
It also needs great support from all until it reaches its momentum and
achieves extraordinary results.
Some of you may ask, Can we have better results than we already
have? The answer is yes. All the involved parties must keep trying to
overcoming all the odds, no matter what, when or where.
In order to achieve greater results, the Council of Cooperative Health
Insurance has adopted a principle of flexibility, so as to modify any rules
that do not comply with future challenges or changes. The Council has
recently amended 40 percent of the executive regulations in order to
keep pace with new developments and changes.
The Council is also waiting for the approval of the Royal Cabinet, on
amending the violations section in Article XIV of the health insurance
system. We strongly believe that being able to update the system
whenever it is necessary is the correct path for development.
We will not allow anybody to say that the health insurance system in
the Kingdom is an ancient system, and that it can no longer keep pace
with latest developments in the insurance market.
It is not the end of work, what we are doing now is just the beginning.
This is a promise we have made in the Council, and a challenge we are
planning to meet.
Mohammed bin Salman Al-Hussain

Assistant Secretary General
Financial and Admin Affairs
Council of Cooperative Health Insurance
11372 301292 :..

00966 1 461 2966: 00966 1 462 3632 :
6 -
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