Qatar’s compulsory health insurance law, which is expected to take effect in May 2022, could generate an additional QAR1bn ($275m) to QAR1.5bn in GWP in Qatar in the coming years, according to S&P.
The Qatar government approved the compulsory health insurance law in 2021. Under the law, all foreign visitors, residents, and workers in the country will have to hold medical insurance for the entire duration of their stay, unless they are exempt.
The rating agency expects that, at the same time, higher public expenditure to diversify the Qatari economy and further preparation for the 2022 FIFA World Cup will contribute to GWP growth in 2022, reported Gulf Times citing S&P. GWP in Qatar amounted to around $1.5bn in 2020.
The agency said, “In 2021, we estimate combined ratios of 90%-92%, after just below 90% in 2020. We then expect combined ratios to converge closer to about 95%, potentially between 93%-96%, as the proportion of medical business increases, which tends to have lower profit margins.”
The new health insurance scheme will replace an earlier scheme which was disbanded in 2015. All non-Qatari residents and visitors in Qatar must have private health insurance for the duration of their stay to receive basic medical services. M