UAE: Mental health insurance premiums increase by 10-15%
Source: Middle East Insurance Review | Feb 2024
Mental health insurance premiums in the UAE have been increasing by 10-15% every year, and this trend is expected to continue in 2024, according to insurance industry executives.
Insurance industry players also say that the demand for mental health insurance continues to grow among UAE residents due to a rise in awareness in the post-pandemic period.
Abu Dhabi-based insurance broker eSanad founder and CEO Anas Mistareehi said mental health insurance premiums have been increasing by at least 10% every year in the wake of the COVID-19 pandemic due to medical inflation, reported Khaleej Times.
“This increase is expected to continue in 2024, so policyholders will have to shell out more for their health insurance premiums, as nearly half of the insurance companies in the market have already increased their premiums and the remaining will follow as a kind of correction due to the high utilisation,” said Mr Mistareehi.
Unitrust Insurance executive director Moin Ur Rehman said health insurance premiums, including those of mental health insurance, have generally hiked in 2023 because medical treatment has become costlier.
“Mental health treatments can be a medium to long-term commitment, potentially leading to significant medical expenses, which may also play a part. The outlook for 2024 suggests a continuation of this trend; we don’t see medical insurance premiums falling anytime soon,” said Mr Rehman.
He said, “There’s also an increasing demand for coverage that includes holistic and alternative treatment options. It is more common for individuals to seek this coverage. In contrast, for companies, it is usually the larger or multinational companies which are likely to include this coverage for their employees.” M