A majority of the 24 insurance companies operating in the Kingdom have refused to insure companies and establishments employing less than 50 workers due to the small anticipated profit margin. As the Sept. 15 deadline set by the Council of Cooperative Health Insurance (CCHI) nears, several small establishments are making a beeline to insurance companies who are reluctantly agreeing to take out insurance for businesses with less than 30 workers, setting a minimum of SR3,000 per annum as insurance per worker. In an advertisement published in newspapers on Saturday, the CCHI has threatened stiff actions against non-compliant companies. Dr. Abdel-Elah Al-Sa'ati, member of the CCHI and an health insurance expert, said that the decision will harm more than 76 percent of the Kingdom's economic sectors, Al-Madina daily said. “Most insurance companies have raised insurance premiums by up to 100 percent, taking advantage of the fact that only 24 insurance companies are licensed to operate in the country. Therefore, the owner of an establishment with 20 workers will be required to pay a minimum of SR40,000 to take out insurance for his workers, which is too much for most small business owners,” he said. __
