Middle East - UAE: Insurers urged to be ready for surge in medical insurance demand
Source: Middle East Insurance Review | Jun 2016
The third stage of Dubai’s compulsory healthcare scheme will be completed by the end of this month, when companies with fewer than 100 employees, and individuals, would have purchased healthcare insurance. Insurers will have to be attentive and ready to meet the rise in demand, according to Dr Haidar Al Yousuf, Director of Health Funding at the Dubai Health Authority (DHA).
Opening the Emirates Insurance Association’s 2016 Healthcare Conference in Dubai last month, he encouraged insurers to roll out suitable and affordable offerings since the third stage of the scheme would largely cover individuals. He expects the size of the insured population in Dubai to reach 3.8 million by July, up from 2.6 million at the end of 2015.
To ensure compliance with the compulsory healthcare insurance scheme, there will be a linkage to the visa issuance system of the immigration authorities. In addition, penalties will be imposed for violations of the scheme. “Those two tools are to ensure that all the population is covered,” said Dr Al Yousuf.
Health insurance in the UAE grew by 120% over the past five years reaching AED12.8 billion (US$3.5 billion) in 2015, accounting for 45% of the country’s general insurance premiums.
AED1 = US$0.27