UAE: ‘Undervalued’ health insurance premiums set to rise in 2022, experts say – News

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They claimed that the demand for health insurance is strong in the Northern Emirates



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Published: Sat 12 March 2022, 08:46

Demand for health insurance continues to rise in the UAE after the outbreak of the Covid-19 pandemic. Industry leaders expect premiums to rise this year.

They claimed demand for health insurance is high in the Northern Emirates, which has yet to make it compulsory for residents.

Dr Yasser Khalifa, Executive Vice President and Head of Benefits, Oman Insurance Co., said there was an increase in awareness and the daily market was maturing after Covid-19.

“The individual population that was uninsured or did not renew their insurance, expressed interest in buying or renewing it. The market has been growing, especially in the Northern Emirates. , Covid-19 has caused coverage upgrades and we have seen people move from a basic plan to a more comprehensive plan,” he added.

He further clarified that some customers with a large number of employees have requested to cover the Covid-19 pandemic also in the insurance policies. “During the outbreak of Covid-19, we had started offering a 24/7 teleconsultation service through a preferred partner and we are receiving requests to continue to include this service in the plan. .”

Khalifa estimates that premium rates should drop from 8% to 10% in 2022.

According to Badri Consultancy, UAE-listed insurance companies recorded a 7% increase in premiums in 2021, from Dh24.40 billion in 2020 to Dh26.09 billion last year. No less than 16 of the 29 listed companies posted growth last year.

Undervalued premiums

In the United Arab Emirates, insurance has been classified into two parts: individuals and companies who buy for their employees. Individual plans are predefined products and do not have the flexibility to modify benefits other than those offered by the insurer. While group insurance is personalized according to customer requests.

Sanjeev Anand, Managing Director of Business Development at Al Sayegh Insurance Brokers, noted that there is an increase in demand for health insurance in the UAE due to Covid-19. He also noted that plans to introduce compulsory health insurance in the Northern Emirates are slowly underway.

Anand praised the UAE government’s proactive approach to reducing the stress on individuals to bear the cost of Covid-19 treatment, as it is covered by all health insurance plans.

“In my opinion, health insurance premiums in the UAE need to be corrected. The current premiums are understated. The government is studying the modification of a premium table for the basic schemes keeping in mind the benefit of mass population. At the same time, promoting a sustainable business model. We’ve seen double-digit growth in group insurance premiums.”

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