Health insurance in the UAE is becoming a costlier affair for residents, with premiums soaring up to 35%. Over the last two months, a series of rate hikes by insurance companies have seen the cost of health insurance climb, with variations based on age.
Toshita Chauhan from PolicyBazaar.ae reported that the rise in premiums began in August 2023, with the most recent hike recorded mid-October. The pandemic’s aftermath has been pinpointed as the catalyst for annual increases of 15% to 20% in health insurance rates, largely driven by medical inflation.
The nation’s health insurance mandate requires employers to insure their employees, though coverage for dependents often falls to parents. Despite the cost increase, the UAE’s health sector remains robust, drawing medical tourists and substantial revenue.
For lower-income earners under Dh4,000 monthly, the minimum premium remains unaltered. Yet, certain demographics, like married women aged 18 to 45, are seeing a 10% increase, with even higher rates for dependents.
Moin Ur Rehman of Unitrust Insurance clarified that while basic plan premiums are stable, those for standard plans have risen, reflecting the broader trends of an ageing population, chronic disease prevalence, and escalating healthcare costs.