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UAE: Medical insurance premiums increase by up to 20%, say brokers

'Pre-existing medical conditions that were previously considered low-risk may now be viewed more cautiously'

Insurance companies in the UAE have become more vigilant, tougher and demanding, increasingly asking policy buyers to provide more details of their medical history, including previous accidents and surgeries.

Industry executives say that health insurance premiums have been steadily increasing by 15 to 20 per cent every year since the pandemic.

Moin ur Rehman, executive director, Unitrust Insurance Broker, said insurance companies are now demanding stricter requirements for their policyholders.

“Pre-existing medical conditions that were previously considered low-risk may now be viewed more cautiously, leading to higher premiums or even policy rejection,” he said, adding that as a result, policyholders are required to undergo more rigorous health assessments and provide more extensive documentation of their medical history to secure coverage.

Hitesh Motwani, chief marketing officer, insurancemarket.ae, said insurance companies have been a bit more vigilant especially because all elective surgeries during the pandemic were put on a halt as per government instructions.

“After this was lifted, many insurers wanted to get their respective surgeries done, and all insurers onboarding new clients were carefully reviewing health insurance applications keeping this in mind. Accordingly, the insurers charged a higher premium for cases requiring surgeries and this loading typically has been around 100 per cent of the original premium of a standard case,” he said.

Moin ur Rehman added that insurers are now more likely to require comprehensive medical records and additional examinations and screenings to better understand an individual's risk profile and to mitigate potential losses for insurance companies.

Claims rejected

Citing an example, he said a Dubai resident in his 40s encountered difficulties when purchasing life insurance due to his past medical history, which included a bout of pneumonia. The insurance company required a detailed account of his health history and insisted on additional medical tests before approving his policy.

“This case highlights the growing trend of insurers taking a more cautious approach when evaluating policyholders' health backgrounds in the wake of Covid-19.”

Unitrust Insurance Broker's executive director said the failure to disclose prior surgeries or accidents when purchasing insurance may result in claim denial, as it is considered a breach of the policyholder's duty to disclose material facts.

“The practice existed before the pandemic but is becoming more prevalent as insurers tighten their underwriting guidelines in response to the changing risk landscape. Policyholders are now required to be fully transparent about their medical history to avoid potential claim denials. The increased scrutiny on non-disclosure has led to more claim disputes and heightened awareness among policyholders about the importance of transparency.”

He said a policyholder’s claim was denied due to the non-disclosure of previous surgery. Although the individual argued that they were unaware of the need to disclose this information, the insurance company maintained its decision to reject the claim.

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