Why are health insurance premiums surging in Dubai?
It’s inevitable that the prices of products and services will increase over time. Most people aren’t particularly fond of price increases. After all, if the cost of your grocery shopping, or other essentials, goes up significantly, you may have cause to worry about the rising cost of living.
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Health insurance premiums will also rise over time, so it’s important to select plans based not solely on price, but also the insurer’s reputation as it pertains to premium increases – i.e. do the provider’s plans have a history of stable or erratic increases? Enhancing your knowledge of the market is therefore essential; what better place to start than reading Pacific Prime Dubai’s Cost of International Health Insurance in Dubai – 2019 report?
In today’s article, we will guide you through the main health insurance trends shaping health insurance costs globally and in Dubai. For a more in-depth overview of international and Dubai health insurance inflation rates, be sure to download your free copy of the report today.
Health insurance premium inflation rates globally and in Dubai
Before looking at the key trends shaping premiums in the Emirate, let’s first take a brief look at the average price increases seen in Dubai and globally. The average Dubai health insurance inflation rate was 10.39% in 2020, which is lower than in previous years. However, it is still ranked as the fifth most expensive country for individual health insurance in the world.
Despite the impact of the novel coronavirus pandemic this year, the Americas continue to top the chart. They also happened to be the most represented in the top 20 most expensive countries for international private medical insurance (IPMI), followed by Asia-Pacific, and then the Middle East.
Key trends shaping international health insurance premiums globally
Before outlining the Dubai-specific factors influencing IPMI inflation in the Emirate, it would be prudent to first address the global factors shaping health insurance premiums in all of the regions reviewed in Pacific Prime’s study. While the first part of the “Pacific Prime’s Analysis” section of the report focuses on 5 standout findings from our 2020 premium rankings, the second part explores the key macro drivers of health insurance costs globally. These are:
- Cost of care – Healthcare costs have outpaced general inflation. Several factors include rising drug prices, an aging population, and an increase in chronic illnesses.
- Increased regulation – Jurisdictionally, insurers have to comply with regulations ranging from anti-money laundering, tax reporting and consumer protection to data privacy. Thus, they struggle to deal with the compliance costs.
- Continued challenges related to fraud – One major challenge to insurers is the fraudulent claims by both healthcare providers and policyholders. This is likely to affect IPMI premiums in the future.
Emerging trends
In addition to the above drivers, the IPMI inflation report further points to two emerging trends that Pacific Prime believes have not only had an impact on premiums in 2020, but will most likely influence premiums in 2021 as well. These include:
- Changing demand for care – The COVID-19 pandemic has increased healthcare utilization, especially in the areas of telemedicine and virtual healthcare solutions.
- The rise of insurtech – The pandemic has accelerated digital technology and innovation in the insurance sector, pushing insurers to adapt and catch up with insurtech.
Dubai-specific IPMI inflation drivers
Dubai insurers are adjusting their pricing strategies in response to the epidemic’s wide-ranging impact. While policyholders have been holding off on non-essential doctor’s visits and check-ups for fear of catching COVID-19, insurers are expecting claims to surge as Dubai opens up again. In the meantime, these are the reasons why the cost of health insurance in Dubai has gone up.
In the “Dubai” section of the report, we identified three particularly prominent trends that have had an upward impact on health insurance premiums in the Emirate:
- Refinement and readjustment of group health insurance plans – To save costs, companies have been forced to downsize and opt for lower tiers of insurers.
- Suspension of coverage for employees’ dependents – In an attempt to tighten their budget, numerous businesses have also suspended coverage for employees’ dependents. This has resulted in an increased demand for individual health insurance from those who would normally be covered under a company-sponsored plan. On a related note, save money with these top 6 non-monetary employee benefits in the UAE.
- Interest in short-term coverage for employees who have lost their jobs – The economic downturn has led to widespread layoffs. As a result, there has been more interest in short-term coverage for those in between employment.
Download a complimentary copy of the Cost of Health Insurance report today
Pacific Prime’s 2019 Cost of Health Insurance in Dubai report is completely free to download. Access the report for more information on global and Dubai health insurance inflation rates and health insurance trends, as well as a wealth of information on:
- Global inflation rates from 2020-2021 utilizing data from 100 countries
- Inflation trends in Asia, the Middle East, and Rest of the World
- Analysis of 5 standout findings
- Key drivers shaping health insurance globally and in Dubai
As a leading insurance broker in Dubai, we’ve always endeavored to assist individuals and corporate clients through every step of their insurance journey. Secure individual health insurance or family health insurance with us today. Our team is standing by to match you with the best plans, give you impartial advice, and offer you a free price quote. To learn more about us, get in touch with Pacific Prime Dubai today.
Why are health insurance premiums surging in Dubai?
It’s inevitable that the prices of products and services will increase over time. Most people aren’t particularly fond of price increases. After all, if the cost of your grocery shopping, or other essentials, goes up significantly, you may have cause to worry about the rising cost of living.
Health insurance premiums will also rise over time, so it’s important to select plans based not solely on price, but also the insurer’s reputation as it pertains to premium increases – i.e. do the provider’s plans have a history of stable or erratic increases? Enhancing your knowledge of the market is therefore essential; what better place to start than reading Pacific Prime Dubai’s Cost of International Health Insurance in Dubai – 2019 report?
In today’s article, we will guide you through the main health insurance trends shaping health insurance costs globally and in Dubai. For a more in-depth overview of international and Dubai health insurance inflation rates, be sure to download your free copy of the report today.
Health insurance premium inflation rates globally and in Dubai
Before looking at the key trends shaping premiums in the Emirate, let’s first take a brief look at the average price increases seen in Dubai and globally. The average Dubai health insurance inflation rate was 10.39% in 2020, which is lower than previous years. However, it is still ranked as the fifth most expensive country for individual health insurance in the world.
Despite the impact of the novel coronavirus pandemic this year, the Americas continue to top the chart. They also happened to be the most represented in the top 20 most expensive countries for international private medical insurance (IPMI), followed by Asia-Pacific, and then the Middle East.
Key trends shaping international health insurance premiums globally
Before outlining the Dubai-specific factors influencing IPMI inflation in the Emirate, it would be prudent to first address the global factors shaping health insurance premiums in all of the regions reviewed in Pacific Prime’s study. While the first part of the “Pacific Prime’s Analysis” section of the report focuses on 5 standout findings from our 2020 premium rankings, the second part explores the key macro drivers of health insurance costs globally. These are:
- Cost of care – Healthcare costs have outpaced general inflation. Several factors include rising drug prices, an aging population, and an increase in chronic illnesses.
- Increased regulation – Jurisdictionally, insurers have to comply with regulations ranging from anti-money laundering, tax reporting and consumer protection to data privacy. Thus, they struggle to deal with the compliance costs.
- Continued challenges related to fraud – One major challenge to insurers is the fraudulent claims by both healthcare providers and policyholders. This is likely to affect IPMI premiums in the future.
Emerging trends
In addition to the above drivers, the IPMI inflation report further points to two emerging trends that Pacific Prime believes have not only had an impact on premiums in 2020, but will most likely influence premiums in 2021 as well. These include:
- Changing demand for care – The COVID-19 pandemic has increased healthcare utilization, especially in the areas of telemedicine and virtual healthcare solutions.
- The rise of insurtech – The pandemic has accelerated digital technology and innovation in the insurance sector, pushing insurers to adapt and catch up with insurtech.
Dubai-specific IPMI inflation drivers
Dubai insurers are adjusting their pricing strategies in response to the epidemic’s wide-ranging impact. While policyholders have been holding off on non-essential doctor’s visits and check-ups for fear of catching COVID-19, insurers are expecting claims to surge as Dubai opens up again. In the meantime, these are the reasons why the cost of health insurance in Dubai has gone up.
In the “Dubai” section of the report, we identified three particularly prominent trends that have had an upward impact on health insurance premiums in the Emirate:
- Refinement and readjustment of group health insurance plans – To save costs, companies have been forced to downsize and opt for lower tiers of insurers.
- Suspension of coverage for employees’ dependents – In an attempt to tighten their budget, numerous businesses have also suspended coverage for employees’ dependents. This has resulted in an increased demand for individual health insurance from those who would normally be covered under a company-sponsored plan. On a related note, save money with these top 6 non-monetary employee benefits in the UAE.
- Interest in short-term coverage for employees who have lost their jobs – The economic downturn has led to widespread layoffs. As a result, there has been more interest in short-term coverage for those in between employment.
Download a complimentary copy of the Cost of Health Insurance report today
Pacific Prime’s 2019 Cost of Health Insurance in Dubai report is completely free to download. Access the report for more information on global and Dubai health insurance inflation rates and health insurance trends, as well as a wealth of information on:
- Global inflation rates from 2020-2021 utilizing data from 100 countries
- Inflation trends in Asia, the Middle East, and Rest of the World
- Analysis of 5 standout findings
- Key drivers shaping health insurance globally and in Dubai
As a leading insurance broker in Dubai, we’ve always endeavored to assist individuals and corporate clients through every step of their insurance journey. Secure individual health insurance or family health insurance with us today. Our team is standing by to match you with the best plans, give you impartial advice, and offer you a free price quote. To learn more about us, get in touch with Pacific Prime Dubai today.
When she's not typing away on her keyboard, she's reading poetry, fueling her insatiable wanderlust, getting her coffee fix, and perpetually browsing animal Instagram accounts.
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