UAE: Mandatory health insurance likely in all UAE emirates: Analysts
Source: Middle East Insurance Review | Apr 2017
The introduction of compulsory health insurance in Dubai and Abu Dhabi is expected to be also implemented in the remaining five UAE emirates in the near future, leading to further premium growth.
However, considering that more than 90% of medical premiums in the UAE are generated within Abu Dhabi and Dubai, and both emirates have now completed the implementation of their medical insurance programmes, analysts expect that it will become increasingly difficult for insurers to continue this pace of premium growth, unless they find innovative ideas to diversify into newer business lines, reported Gulf News.
In 2015 and 2016, the surge in medical premiums has given a boost to UAE insurers and somewhat offset the impact of the economic slowdown caused by the decline in oil prices, according to analysts.
GWP for the UAE’s 61 insurers are estimated to have risen by about 19% to US$12 billion in 2016, helped by the implementation of compulsory health insurance in Dubai, but the market remains fragmented.
In 2015, medical premiums in the UAE grew by 18.6% to AED13.1 billion (US$3.6 billion), representing 35.5% of total market share.
AED1 = US$0.27