According to recent data from the Central Bank, the total cost of treating insured patients covered by medical insurance in the UAE amounted to 16.5 billion dirhams for the first nine months of the previous year. This is an increase of 2.1 billion dirhams compared to 14.4 billion dirhams at the end of the same period in 2023, which constitutes a growth of 14.6% - the highest increase in this category over the past six years.
On the other hand, the total insurance premiums in the medical insurance sector for the reporting period increased to 24.4 billion dirhams compared to 20.1 billion dirhams for the first nine months of 2023, having risen by 4.3 billion dirhams or 21.4%.
According to the report, mandatory health insurance is required in the smaller emirates, including Abu Dhabi and Dubai, where laws require all residents to have health insurance. Typically, companies must provide health insurance for their employees, while contractors and domestic workers often also need to be insured through the company or through specialized measures.
Representatives of the insurance association in the UAE noted that many insurance companies often do not receive significant revenue from health and auto insurance due to high payouts for insurance claims. However, most companies have increased their percentage of patient payouts in terms of treatment from 20% to 30% over recent years.
Increased payout provisions are due to a rise in the number of insured individuals, which is reflected in the increased documentation. Over the past six years, it is also noted that the gap between premiums in the medical insurance sector and payouts for the same period exceeded 7.9 billion dirhams.
Association representatives noted that the increase in insurance premiums and demands in the medical insurance sector is linked to rising demand due to the mandatory nature of health insurance for residents in order to extend coverage in the country, as in Dubai and Abu Dhabi, which increases the demand for residents in these emirates and, subsequently, the premiums and requirements.
Overall, insurance companies continue to develop health insurance programs for expatriates and residents of the UAE, taking on their expenses in the healthcare sector.
