UAE residents are experiencing a significant rise in mental health insurance premiums, with an annual increase of 10 to 15 percent. This trend, as noted by insurance industry executives, is set to continue into 2024. The surge in premiums is attributed to a growing demand for mental health coverage, particularly in the wake of the COVID-19 pandemic which has heightened awareness of mental health issues.
Anas Mistareehi, CEO of eSanad, explained in a Khaleej Times report that the post-pandemic period has seen a consistent rise in mental health insurance costs due to medical inflation. Almost half of the insurance companies in the UAE have already raised their rates, with others expected to follow suit.
Moin Ur Rehman, Executive Director of Unitrust Insurance, also noted that the cost of medical treatments, including mental health services, has increased in 2023, leading to higher insurance premiums. He emphasized that mental health treatments often require long-term commitment, thus contributing to the rising costs. Rehman does not foresee a decrease in medical insurance premiums in the near future.
The World Health Organisation reported a sixfold increase in mental health treatment in the UAE since 2020. The heightened demand for mental health insurance is driven by increased awareness of conditions like anxiety, depression, and stress-related disorders, as well as societal changes and influences from countries where mental health awareness is more established.
Mistareehi revealed that not all health insurance plans cover mental health, but medical insurance in the UAE does cover several psychological disorders, including depression. Some providers offer specialized mental health plans, treating mental illnesses on par with physical illnesses.
Despite this, Rehman pointed out that most insurance policies do not automatically include mental health coverage and it must be specifically requested. There is, however, a growing trend towards the inclusion of mental health services in comprehensive insurance plans.
Both individuals and companies are increasingly seeking insurance plans with broader mental health coverage. This includes not just therapy and counselling, but also preventive care, alternative therapies, and digital mental health solutions. According to Rehman, people now prioritize maximum coverage for mental health services due to the high costs and long-term nature of treatments. However, the high premiums associated with such comprehensive coverage remain a concern for many.
