Enhancing Competition and Economic Analysis in the Health Insurance Sector for a Regional Regulator
BACKGROUND & OBJECTIVE
The project aimed to support the General Authority for Competition in conducting a detailed study of the health insurance sector in accordance with competition law to achieve improved and fair competition. The objective was to define the value chain of the health insurance sector, assess the level of competition, and identify measures to limit non-competitive practices while promoting market consolidation and innovation.
PROJECT APPROACH
- Health Insurance Value Chain Assessment
- Conducted an economic and legal analysis of the health insurance value chain, covering insurers, providers, and consumers.
- Assessed market concentration and competition barriers in Saudi Arabia.
- Benchmarking & Regulatory Review
- Conducted international benchmarking of health insurance markets in comparable countries.
- Reviewed global best practices in health insurance market structure and competition policies.
- Market Behavior & Competitive Analysis
- Applied Theories of Harm Approach to analyze non-competitive behaviors and market inefficiencies.
- Utilized the Herfindahl-Hirschman Index (HHI) and other market concentration indicators to evaluate the level of competition.
- Policy Recommendations & Strategic Reforms
- Developed policy options and regulatory interventions to mitigate market risks.
- Provided strategic recommendations to improve market transparency, consumer protection, and fair pricing mechanisms.
OUR METHODOLOGY
- Primary Research & Data Collection – Conducted industry interviews and surveys to gather qualitative and quantitative insights.
- Benchmarking & Comparative Analysis – Analyzed international insurance models, focusing on competition laws and regulatory frameworks.
- Economic & Financial Modeling – Used demand and supply analysis to evaluate pricing structures and market behavior.
- Policy Development – Created a structured roadmap for improving market fairness, efficiency, and competitiveness.
THE RESULTS
- Developed an international benchmarking analysis of the health insurance sector, identifying best practices and regulatory frameworks.
- Produced a regulatory and industry assessment report detailing the health insurance market structure, including providers, insurers, and value chainanalysis.
- Calculated market concentration indicators, including HHI, to measure the degree of competition and highlight potential risks.
- Developed policy recommendations to prevent excessive market concentration, encourage innovation, and ensure fair pricing for consumers.
- Provided a roadmap for regulatory improvements, including market monitoring tools and competition-enhancing policies.
