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UAE is witnessing a continuous rise in demand for health insurance in the aftermath of the COVID-19 pandemic outbreak in the country. According to industry executives, health insurance premiums are also expected to rise this year.
They noted that the demand for health insurance is particularly strong in the Northern Emirates.
Speaking in this regard, Dr Yasser Khalifa, executive vice president and head of employee benefits at Oman Insurance Co., underlined that people have become more aware and the day-to-day market is getting mature after the COVID-19 pandemic.
He added that individuals who were uninsured and those who had not renewed their insurance are showing more interest in buying or renewing their policies.
"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 said.
He further explained that a number of clients with a large number of employees are demanding COVID-19 pandemic cover in their insurance policies. After the COVID-19 pandemic, various insurance companies started offering 24x7 teleconsultation services. There has been an increase in demand for continuing teleconsultation services in the insurance plans.
Industry experts are also expecting premium rates to increase from 8 to 10 percent in 2022.
Badri Consultancy reported that there has been a 7 percent increase in premiums in 2021 by listed insurance companies in UAE. It means premiums have surged from Dh24.40 billion in 2020 to Dh26.09 billion last year. Furthermore, around 16 out of 29 listed companies have displayed growth last year.
Improvements needed
In the UAE, insurance is categorised into two parts – individuals and companies buying for their employees.
Under the individual plans, products are predefined and there is a lack of flexibility in changing the benefits offered by the insurer. Group insurance, on the other hand, is customised on the basis of clients’ requests.
Sanjeev Anand, general manager of business development at Al Sayegh Insurance Brokers, stated that there has been an increase in health insurance in the UAE due to COVID-19. In addition, Northern Emirates is slowly moving towards making health insurance mandatory for people.
Anand went on to praise the UAE government’s proactive approach in limiting the financial stress on individuals for bearing the cost of COVID-19 treatment after necessary cover provided a majority of health insurance plans.
He further suggested a few corrections in health insurance premiums in UAE, noting that Current Premiums in the country are under-priced.
"The government is exploring the change in a premium chart for basic plans keeping in mind the benefit of the mass population. At the same time promoting a sustainable business model. We have observed double-digit growth in group insurance premiums," Anand added.
SOURCE: Khaleej Times