ONLY 30 per cent of the small and medium enterprises (SMEs) in Bahrain have health insurance coverage, estimates an expert.
This reflects a lack of awareness about proper risk management, and making health insurance mandatory is crucial to help SMEs, said InuSecrets founder and managing director Badriya Abdulrahman.
SMEs constitute 96pc of Bahrain’s market and contribute to 30pc of the country’s gross domestic product (GDP), according to latest government figures.
“Notably, SMEs account for over 90pc of the Bahraini economy, according to the Industry, Tourism and Commerce Ministry,” Ms Abdulrahman told the GDN.
“There is no official data available on the percentage of companies that are insured, but in my observation, only an estimated 30pc of these are insured, which include not only medical insurance, but also general insurance.
“This is not enough and I think health insurance coverage is always a protection for SMEs and others, all the more a backup at such unprecedented times like now, as we battle Covid-19.
“There is a lack of awareness on the need to be insured and a proper education will help SMEs and startups understand the benefits better.
“Insurance, especially health insurance, should be made mandatory by law and we hope the gap will be bridged with Bahrain’s much-awaited National Health Insurance Scheme (Sehati).”
Sehati was originally due to be rolled out last year, but was pushed back to the second half of this year at the earliest.
Once Sehati is launched Bahrainis will continue to be eligible for free services at public health facilities, while paying 40pc should they opt for private care.
“The challenge for employers is to design benefits that ensure that healthcare is of high quality and is enhanced with technology so that the benefits reflect in all other aspects of their business,” explained Ms Abdulrahman.
“The payoff for reimagining benefits can be powerful.
“Research shows that companies with high employee morale significantly outperformed their peers in both bear and bull markets.
“Offering health insurance is beyond typical employer requirements.
“There are several advantages of offering a group medical insurance for the employees such as retaining and attracting employees, helping businesses stand out in performance and also in building a healthier workforce.
“Group medical insurance coverage may be a worthwhile investment for SMEs, regardless.”
A member of the Bahrain Businesswomen Society (BBS), Ms Abdulrahman further explained that SMEs could resort to a “pooling system” by joining under one umbrella and get elevated as one bigger group.
“SMEs should start looking at group medical insurance schemes for their employers to attract and retain their employees,” she noted.
“SMEs and even mid-sized companies should actively evaluate group medical insurance as these provide a cost-effective way of delivering valuable employee benefits.
Ms Abdulrahman
“So, it’s very important for SMEs to get medical insurance.
“We have come up with a suggestion to the BBS – which is pooling all SMEs under one group to increase the number.
“This pooling will allow us to elevate all SMEs as one group.
“There are lots of measures that can be implemented specially with regards to claim managements which will help us manage the schemes for renewal terms.”
Ms Abdulrahman was speaking to the GDN on the sidelines of an online session on benefits of insurance organised by the BBS. She also noted that it was important to discuss medical insurance and how to manage it better.
Package
“The key of getting a good insurance package is volume (number of people) – the bigger the scheme the better terms we can get.
“Some drawback of small and medium enterprises (SMEs) or individual medical insurance is that it is limiting in terms of benefits covered.
“The premium rates are usually high, and another area of conflict is that of the coverage of pre-existing and chronic disease situations, which is usually difficult to get in SMEs, whilst in larger group this is available.”
The GDN last month reported another expert citing the need to mandate insurance and risk management policies for SMEs and family businesses by law.
Ami Brokerage chief executive Fathalla Ebrahim also called for more awareness on the need to insure businesses, which he said could save companies in times of unprecedented crises.
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