The Central Bank of the UAE has reported that healthcare claims paid by insurance companies in the UAE reached Dh16.5 billion during the first nine months of 2024. This figure represents an increase of Dh2.1 billion, or 14.6%, compared to the same period in 2023, marking the highest growth rate in healthcare claims reported in nearly six years.

Health insurance is mandated by law in the UAE, requiring employers to provide coverage for their employees.

Coverage for dependents and domestic workers is typically arranged through employers or separately.

The Central Bank indicated that insurance companies face challenges in generating substantial profits from health and motor insurance due to the high volume of claims.

In response to rising costs, many insurers have raised patients' co-payment requirements, with deductibles now ranging between 20% and 30%.

The increase in health insurance claims is largely attributed to the growing number of insured individuals, which is mirrored in the rise of active insurance policies.

The health insurance sector in the UAE continues its expansion, fueled by the national commitment to improving healthcare and insurance services.

This commitment is reflected in ongoing initiatives that involve cooperation among government bodies, regulatory agencies, professional associations, and insurance companies.

Abdul Mohsen Jaber, Chairman of the Health Insurance Committee at the UAE Insurance Federation, stated that the rise in health insurance premiums and claims can be attributed to several key factors.

He noted that health insurance is now a necessary requirement for residency renewal in the UAE, leading to increased demand from both residents and expatriates.

Furthermore, the UAE's economic and social stability has made it an attractive destination for living and working, contributing to a surge in population and, consequently, healthcare expenditures.

Increases in operational costs for hospitals and the adoption of advanced medical technologies, as well as higher fees charged by service providers, are also factors contributing to the rise in insurance claims and premiums.

Jaber also pointed out that heightened public awareness of health issues following the COVID-19 pandemic has led individuals to engage more actively in health-related activities such as preventative healthcare, regular check-ups, and increased prescription rates.

This trend has collectively resulted in heightened insurance claims, prompting insurers to adjust their premium rates accordingly.

Moreover, Jaber noted an aging insured demographic among employees in both the public and private sectors, which naturally leads to higher insurance costs compared to younger policyholders.

In summary, the healthcare insurance landscape in the UAE is evolving amid regulatory requirements, growing awareness, and demographic shifts.