According to the latest report by IMARC Group, titled “UAE Health Insurance Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the UAE health insurance market size reached US$ 5.3 Billion in 2018. Health insurance provides coverage for the medical or surgical expenses of an insured individual. As per the type of insurance, the person can either pay directly to the insurance provider or pay costs out of pocket and receive reimbursement. Over the past few years, medical routines and treatments have become costlier, leading to a rise in the number of health insurance providers. In the UAE, several emirates have introduced health insurance programs to secure their residents and government employees. For instance, the Department of Health in Abu Dhabi announced amendments to its health insurance programs for the benefit of its employees and residents. Moreover, in Dubai, the Dubai Health Insurance Corporation designs various new health insurance plans, protects the rights of policyholders, and ensures the provision of quality health insurance to the emirate’s citizens, residents and visitors.
UAE Health Insurance Market Trends:
In recent years, the UAE Government has made several efforts to establish Dubai as the most significant healthcare excellence center across the region. It implemented a mandatory insurance framework in the emirate through the Health Insurance Law No. 11, published in 2013. According to the framework, it is compulsory for all UAE Nationals, Dubai residents and expatriates to have basic health insurance. Other than this, numerous private players are entering the healthcare sector which is further providing a boost to the UAE health insurance industry. Moreover, with rising incidences of lifestyle diseases and the high cost of medical treatments, the health insurance market in the UAE is witnessing rapid growth. Looking forward, the market is expected to grow at a CAGR of around 6% during 2019-2024, reaching a value of US$ 7.1 Billion by 2024.
- On the basis of the type, the market has been segmented into individual and group insurance. Currently, individual health insurance represents the leading segment.
- The market has been analyzed on the basis of the service provider which mainly includes public and private. At present, private health insurance providers exhibit a clear dominance in the market, representing the largest segment.
- Based on the emirates, the market has been categorized into Dubai, Abu Dhabi, Ras Al Khaimah, Fujairah, Ajman, Sharjah and Umm Al Quwain. Amongst these, Dubai represents the largest segment, holding the majority of the total market share. This can be attributed to the implementation of mandatory health insurance for all UAE nationals and expatriates in the emirate.
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