Health insurance claims touch record high at Dh16.5 billion in UAE

The Central Bank of the UAE has revealed that the total cost of healthcare claims paid by insurance companies to insured individuals in the UAE amounted to Dh16.5 billion during the first nine months of 2024.This marks an increase of Dh2.1 billion, or 14.6 per cent, from the corresponding period the previous year. It is also the highest growth rate in this category in nearly six years.
Health insurance coverage is mandatory in the UAE. Employers are generally responsible for providing insurance coverage for their employees, while dependents and domestic workers are typically insured either through the employer or via separate arrangements.
The apex bank also noted that insurance companies do not generate significant profits from health and motor insurance due to the high volume of claims they must pay. However, many insurers have increased the patient’s co-payment, known as the deductible, to 20-30 per cent over the years to offset costs.The rise in claims is attributed to the increasing number of insured individuals, as reflected in the growing number of insurance policies. The health insurance sector continues to expand annually, driven by the UAE’s commitment to enhancing healthcare and health insurance services. The country has introduced initiatives to develop this sector through collaboration between government institutions, regulatory authorities, professional associations, and insurance companies. These efforts aim to modernize the healthcare and insurance ecosystem for both UAE citizens and residents.