Health insurance premiums in the UAE are expected to increase following the recent announcement of a mandatory insurance scheme by the government on March 18, Khaleej Times reported. This new initiative requires all employers to provide health insurance for their employees, including domestic workers, starting January 1, 2025.
According to industry executives, this increase in demand for health insurance, driven by the mandatory nature of the scheme, is likely to lead to higher premiums. Insurers are now faced with the challenge of adjusting their offerings to keep the pricing fair and balanced amidst this surge.
Avinash Babur, CEO of Insurancemarket.ae, highlighted the expected rise in demand for healthcare services and the impact of economic factors such as inflation and advancements in healthcare. He emphasized the importance of insurers adopting a controlled approach to premium adjustments to avoid sudden financial burdens on employers and individuals.
Anas Mistareehi, founder and CEO of eSanad, also predicted a significant increase in health insurance premiums in 2024 and 2025, drawing parallels with historical increases observed in Abu Dhabi and Dubai following similar mandates. He noted that while the impact on family members who will be newly enrolled is expected to be minimal, adjustments in premium structures are inevitable to reflect the new dynamics introduced by the mandatory scheme.
The introduction of this scheme is also anticipated to drive investments in healthcare infrastructure, leading to improvements in service quality and fostering competition, innovation, and advancements in healthcare at a higher scale. Insurers are tasked with ensuring that the transition to the new scheme is smooth, with pricing adjustments made in a fair and balanced manner to accommodate the needs of all policyholders.
