That's a very good question. Many SaaS companies I know do encrypt their data. As you said though, there's many that don't. I think it might not be mentioned be

That's a very good question. Many SaaS companies I know do encrypt their data. As you said though, there's many that don't. I think it might not be mentioned because why the hosting provider might indeed have access to the data, it's usually in their ToS that they do not inspect customer's data unless served a government order. Maybe then a SaaS company can reasonable say, the hosting company isn't looking at the data thus it's not considered sharing with them. That's my thought behind it anyway. I'm interested in what others might think.