The Saudi Arabian insurance industry is rapidly shifting from AI pilots to actively deploying the technology. Companies that build strong data foundations today will be those who scale AI successfully, says Bupa Arabia’s Mr Zaid Al Sharif.
Most insurers in the Saudi market now run AI somewhere in their core operations, mainly in claims processing, fraud detection, underwriting support and customer service.
Bupa Arabia’s Acting Chief Technology Officer, Mr Zaid Al Sharif, credits Vision 2030 and the national data and AI agenda led by the Saudi Data and AI Authority (SDAIA) with driving the sector forward. Regulators have also been clear about expectations on data protection and cyber resilience.
However, he stressed that what differentiates companies today is not whether they use AI but whether they have the data foundations and governance to scale it beyond a handful of pilots.
He said, “At Bupa Arabia, we treat AI as an operating capability rather than a side project. We have dedicated teams for AI, data engineering, intelligent automation and fraud, waste and abuse detection, all working on the same data platform so that models built for one purpose can be reused across the business.”
Data, trust, talent and governance
Mr Al Sharif said that the Saudi Arabian insurance market faces several major challenges from AI. The biggest bottleneck, he said, is data and not algorithms, as insurance data often sit in legacy systems built for transactions, not analytics. A lot of work goes into gathering the data, cleaning them and affirming their veracity before feeding them into models.
The second challenge is trust. In health insurance, a model’s output can affect a member’s access to care or a provider’s payment, so decisions must be explainable and auditable. “Regulators, providers and members all need to understand why something was flagged or approved,” he said.
The third challenge is talent, with demand for experienced Saudi data scientists and AI engineers growing faster than supply, making local talent development and retention a top priority.
“Finally, there is the risk of moving fast without guardrails. With the Personal Data Protection Law (PDPL) and national cyber security controls setting a clear baseline, insurers need to build governance into their AI programmes from Day One rather than add it later,” he said.
From reaction to prevention
On how AI is shaping the health insurance experience in Saudi Arabia, Mr Al Sharif said that for members, the most visible change is speed. “Approvals that used to take hours can now take minutes, and routine requests are increasingly handled automatically, so our people can focus on cases that genuinely need human judgement. Digital channels are becoming smarter too, helping members find the right provider, understand their cover and get answers without waiting on a call,” he said.
“AI is also transforming how we safeguard healthcare systems against fraud, waste, and abuse. While traditional rule-based checks often miss complex discrepancies, advanced machine learning models can instantly detect anomalous billing patterns—such as upcoding or unbundled claims. By identifying these inefficiencies early and accurately, we can effectively contain rising healthcare costs, keep premiums sustainable, and protect our members.”
Mr Al Sharif believes that great potential lies in moving from reacting to illness to preventing it. “With the right consent and safeguards, data can help identify members who would benefit from early intervention or chronic disease programmes. This improves health outcomes and reduces the long-term cost of care,” he said.
Using AI for operational efficiency
To improve operational efficiency without compromising trust, Mr Al Sharif said that efficiency gains are achieved the fastest from high-volume, repetitive work: claims adjudication, document handling, pre-authorisation and reconciliation.
“Combining intelligent automation with machine learning lets insurers process more with the same teams and with fewer errors. For decision-making, the value is in giving underwriters, actuaries and claims teams better information at the point of decision, not replacing their judgement,” he said.
He believes that responsible AI use has to be designed in, not bolted on. In practice, that would mean a few things, such as keeping a human in the loop for decisions that materially affect members or providers and making every model explainable and auditable, so the insurer can show a regulator or a provider exactly why a claim was flagged.
He called for strict data minimisation and access controls in line with the PDPL. Insurers also have to monitor AI models continuously for drift and bias, because a model that was accurate last year may not be so today.
“At Bupa Arabia, we run AI through a governance framework that covers the full lifecycle, from data sourcing and model approval to monitoring and retirement. It slows nothing down when it is done well. It actually makes scaling easier, because the business and regulators trust what is being deployed,” he said.
Future of AI and cyber security inseparable
Mr Al Sharif believes that AI and cyber security are becoming deeply interconnected, because insurers hold some of the most sensitive data that exist, especially health data. AI increases both the value of that data and the size of the target for attackers who today are using AI to make phishing, impersonation and fraud more convincing.
“The positive side is that AI is also one of the strongest defensive tools available and it can detect anomalies in network activity, identify suspicious access patterns and respond faster than any manual team. The same techniques we use to detect claims fraud apply directly to detecting cyber threats,” he said.
In addition, the National Cybersecurity Authority’s controls, the PDPL and the push for local cloud and data residency give the sector a strong framework. Mr Al Sharif expects AI security, meaning protecting the models themselves from manipulation and data leakage, to become a standard part of every insurer’s risk agenda over the next few years, alongside traditional cyber security.
Geopolitical tensions and supply chain disruptions affecting health insurance
Health insurers also contend with global supply chain disruptions and medical inflation, which directly strain the healthcare ecosystem and are reflected in claims costs.
Mr Al Sharif said that the Saudi market has been resilient, though, helped by strong government investment in healthcare and the growth of local manufacturing and supply under Vision 2030. However, insurers cannot take stability for granted.
“Resilience starts with visibility, and data and AI help us see cost trends early, model different scenarios and work with providers on alternatives before the pressure turns into a problem for members. Predictive analytics on utilisation and pricing gives us time to act rather than react,” he said.
On the operational side, Mr Al Sharif said that resilience means not depending on single points of failure, whether those be “one technology vendor, one data centre or one manual process”. Thus, companies must build core capabilities in-house, using local cloud infrastructure and automating critical workflows to reduce exposure. “Strong partnerships with the provider network matter just as much, because continuity of care is ultimately delivered by hospitals and clinics, and we succeed only when they do,” he said.
Focus of health insurance to shift from volume to value
Mr Al Sharif expects the Saudi health insurance market to grow as the population increases, mandatory cover is required in more sectors, and the health transformation programme reshapes how care is delivered. He expects the focus to shift from volume to value, where insurers will compete on member outcomes, experience and cost efficiency rather than price alone. AI will be central to that shift.
“The opportunities I see as most important are, firstly, near-instant claims and approvals as standard rather than the exception; secondly, much stronger anti-fraud, waste and abuse controls that protect the affordability of the whole system; thirdly, personalised and preventive health programmes built on data that members trust us to use well; and fourthly, closer, data-driven collaboration with providers on quality and value-based care,” he said.
He believes that the winners in the AI arena will be insurers who treat data as a strategic asset, invest in their own AI capability and earn the trust of members and regulators through responsible use. “That is the direction Bupa Arabia is committed to, and we see AI as a key enabler in delivering better health outcomes for our members and supporting the Kingdom’s healthcare ambitions,” he said. M