Local health insurance prices are set to rise by more than 8% in 2022, as insurance companies seek to counter claims inflation and the impact of other costs, said insurance industry executives.
The cost of healthcare in the UAE is predicted to rise by up to 5% in 2022, which will be reflected in the claims paid by local insurance companies to service providers such as hospitals and clinics, reported Al Roeya. Medical inflation in the local market is linked to many factors, such as general inflation, advances in local capabilities in treating complex medical cases and the growth of telemedicine.
Emirates Insurance Association secretary-general Fareed Lutfi said that hikes in the prices of medical services and treatment are an annual issue, and that medical inflation is directly reflected in the prices of medical insurance.
He pointed out that medical claims declined during the peak of the COVID-19 pandemic in 2020 as a result of the reduced number of hospital and clinic visits and the postponement of many non-emergency surgery cases, a situation that improved the profitability of insurance companies and prompted price competition. But now, the situation has changed and claims have returned to their normal levels.
He said, “The increase in claims and higher general inflation in the market, and the advance in local medical capabilities and medical technology in the market, will be reflected in the medical inflation rate, which usually exceeds the general inflation rate.”
Regarding expected increases in medical insurance premium rates, he indicated that they could range from 8% to 12% in 2022.
According to preliminary studies, it is expected that the cost of medical care will rise during 2022 by between 4% and 5%, said Nextcare CEO Christian Gregorowicz. Referring to health insurance premiums, he said, “They vary from one company to another, but most likely the rise in prices will not be less than 5%, which is the inflation rate for the cost of care.” M