Source Credit: GULF NEWS
The UAE's health insurance sector has witnessed a record surge, with medical insurance claims reaching Dh16.5 billion in the first nine months of 2024, according to the Central Bank of the UAE. This marks a 14.6% increase (Dh2.1 billion) from the previous year and is the highest growth rate in nearly six years.
Rising insurance costs are attributed to an increasing number of insured individuals, higher hospital operating expenses, advanced medical technologies, and growing service provider fees. Additionally, post-COVID health awareness has led to more medical check-ups and prescriptions, further driving up claims.
To offset rising expenses, insurers have increased co-payment rates to 20-30%. Despite the expanding sector, insurance companies continue to face profitability challenges due to high claim volumes.
Experts highlight that the UAE's economic stability and mandatory health coverage for residency renewals are fueling demand, pushing both premiums and claims higher.
