A policy change far from Berlin could still affect German employers with globally mobile staff. On 1 November 2025 Saudi Arabia introduced a rule obliging sponsors to purchase health insurance *before* a temporary work visa is issued, mirroring frameworks already in force in Germany, Canada, South Korea and the United States.
The announcement underscores a growing consensus: governments want proof of comprehensive medical cover as a precondition for granting entry permits. Germany tightened its own rules in 2024, requiring foreign assignees to carry insurance equivalent to the statutory public plan or certified private cover that meets minimum reimbursement levels. Consulates have since refused several visa applications that presented travel insurance rather than full-scale expatriate plans, according to industry association BDAE.
![Global Trend Toward Mandatory Health Insurance for Work-Visa Holders Highlights German Compliance Duties]()
Why does a Saudi regulation matter for German corporates? First, German multinationals posting staff into the Kingdom must now integrate CCHI-approved insurance certificates into onboarding checklists. Second, the change signals that other jurisdictions may soon emulate the German/Saudi template, expanding the administrative burden on HR mobility teams.
From a compliance standpoint, companies should audit their insurance portfolios to ensure every outbound or inbound assignee’s policy: 1) activates before visa issuance, 2) is linked to the employment contract, and 3) meets host-country deductibles and coverage caps. Failure to do so can lead to visa denials, delayed project starts and potential liability for uncovered healthcare costs.
Strategically, robust health-insurance standards dovetail with corporate duty-of-care obligations and can bolster talent-acquisition messaging—employees increasingly ask about medical coverage when considering assignments in both Germany and the Gulf. Firms that centralise procurement of compliant global policies will be better positioned as more countries tighten rules.
The announcement underscores a growing consensus: governments want proof of comprehensive medical cover as a precondition for granting entry permits. Germany tightened its own rules in 2024, requiring foreign assignees to carry insurance equivalent to the statutory public plan or certified private cover that meets minimum reimbursement levels. Consulates have since refused several visa applications that presented travel insurance rather than full-scale expatriate plans, according to industry association BDAE.
Why does a Saudi regulation matter for German corporates? First, German multinationals posting staff into the Kingdom must now integrate CCHI-approved insurance certificates into onboarding checklists. Second, the change signals that other jurisdictions may soon emulate the German/Saudi template, expanding the administrative burden on HR mobility teams.
From a compliance standpoint, companies should audit their insurance portfolios to ensure every outbound or inbound assignee’s policy: 1) activates before visa issuance, 2) is linked to the employment contract, and 3) meets host-country deductibles and coverage caps. Failure to do so can lead to visa denials, delayed project starts and potential liability for uncovered healthcare costs.
Strategically, robust health-insurance standards dovetail with corporate duty-of-care obligations and can bolster talent-acquisition messaging—employees increasingly ask about medical coverage when considering assignments in both Germany and the Gulf. Firms that centralise procurement of compliant global policies will be better positioned as more countries tighten rules.
