UAE: ‘Underpriced’ health insurance premiums set to rise in 2022, say experts

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

They claimed that demand for health insurance is strong in the Northern Emirates which are yet to make it mandatory for residents.

Dr Yasser Khalifa, executive vice president and head of employee benefits, Oman Insurance Co., said there is an increase in awareness and the day-to-day market is getting mature post Covid-19.

“Individual population who was uninsured or who have not renewed their insurance, have shown interest in buying or renewing it. The market has witnessed growth, especially in the Northern Emirates. Also, Covid-19 has resulted in cover upgrades and we have seen people transitioning from basic to a more comprehensive plan,” he added.

He further elaborated that some clients with a large number of employees have requested to cover the Covid-19 pandemic also in the insurance policies. “During the onset of Covid-19, we had started offering 24x7 teleconsultation service through a preferred partner and we are receiving requests to continue including this service in the plan.”

Khalifa estimates that premium rates are expected to increase from 8 to 10 per cent in 2022.

According to Badri Consultancy, the listed insurance companies in UAE registered an increase of 7 per cent premiums in 2021, rising from Dh24.40 billion in 2020 to Dh26.09 billion last year. As many as 16 out of 29 listed companies exhibited growth last year.

Premiums under-priced

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