In the UAE, you must have health insurance because it’s required by law. Abu Dhabi and Dubai employers must offer basic health insurance to their employees. However, many people buy extra private insurance for better coverage for themselves and their families.
One common issue is that their insurance premiums—what they pay for their plan—seem to go up yearly. But does this happen? Are all insurance policies affected? And if so, how much do premiums usually increase each year?
Here’s a detailed look at why health insurance premium increases every year in the UAE.
Does health insurance premium increases every year in the UAE?
Not always. Health insurance premiums don’t have to go up every year. There’s no rule saying your insurance company must charge you more every time your policy renews. Some people might see their premiums increase, but this is usually due to personal factors like changes in health or lifestyle and overall rising healthcare costs rather than a standard increase for everyone.
What causes health insurance premiums to increase at renewal?
Several factors can lead to higher health insurance premiums. Some affect everyone similarly, while others are more specific to individual situations. Here’s a straightforward overview of what might cause your premiums to go up:
1. Rising healthcare costs
The cost of medical services and equipment is increasing. As these costs rise, your insurance premium does, too, to help cover these higher expenses.
2. Frequency of claims
If you make frequent claims, the insurance company sees you as a higher risk and may increase your premium. On the other hand, not making claims can lead to benefits like lower or stable premiums.
3. Impact of age
As you age, the risk of health problems generally increases, often leading to higher premiums. This is because insurance companies use age to account for the higher risk.
4. Additional coverage benefits
Adding more benefits to your health insurance plan can increase premiums, as the insurance company needs to cover the expanded coverage.
How much do health insurance premiums go up every year?
The rise in health insurance premiums depends on factors like overall market trends and personal risk. In the UAE, people are expected to spend an average of US$299.60 on health insurance per person in 2024. The total amount of premiums will grow by 6.63% each year from 2024 to 2028, reaching US$3.71 billion by 2028. This increase is due to rising healthcare costs and increased insurance spending.
For a better visual representation, here are the official statistics that you can have a look at:
1. Gross written premium (The total amount of premiums written by insurance companies before deductions for reinsurance, cancellations, or other adjustments.)
Latest Update: March 2024
Source: Statista Market Insights
2. Gross written premium change (The change in the gross written premium from one period to another, showing how the premium amount has increased or decreased over time.)
Latest Update: March 2024
Source: Statista Market Insights
Globally, health insurance markets vary greatly. For example, the United States is expected to have a gross written premium of US$1,607.0 billion in 2024. This shows the size of the health insurance industry and why premiums can increase in different regions.
In short, while not every health insurance premium in the UAE will increase yearly, many do because of rising healthcare costs, personal claims history, age, and extra benefits. Knowing these factors can help you better manage your insurance costs.
How to find the cheapest health insurance in Dubai?
Finding the cheapest health insurance in Dubai can be challenging, but it’s doable. To get the best deal, compare different plans and choose the one that offers the most value for the lowest price. Consider these tips:
- Compare plans: Look at different options and prices.
- Opt for high deductibles: Choose a plan with higher deductibles if you want lower premiums.
- Select essential benefits: Pick only the coverage you need and avoid unnecessary add-ons.
How to handle rising premiums?
1. Check your plan every year
Review your health insurance plan yearly to ensure it still fits your needs and isn’t too expensive. Compare different plans and companies to get the best deal.
2. Look at different insurance companies
Different insurers offer various coverage options and prices. Comparing different plans can help you find a better price.
3. Stay healthy
Living a healthy lifestyle can help lower your premiums. Some insurers offer discounts for people who take care of their health.
4. Use preventive services
Use preventive care services to catch potential issues early. This can help you avoid expensive treatments later and might lower your premiums.
What’s the bottom line?
Understanding why health insurance premium increases every year in the UAE can help you make smart choices and manage your healthcare costs better. Knowing what causes these increases and regularly checking your insurance options, you can handle health insurance details in the UAE more effectively. Staying informed will help you find the best plan for your needs and avoid unnecessary costs.
For those looking to explore different providers, you can compare top health insurance companies in Dubai to find a plan that best fits your budget and healthcare needs. Platforms like InsuranceMarket.ae make it easy to compare plans and stay updated on any changes, ensuring you get the coverage that works for you.
Need more guidance?
Check out our other helpful articles on how to choose health insurance in Dubai and understand UAE health insurance law to stay informed and make the right choice for your healthcare needs.
Frequently Asked Questions (FAQs):
Q. Why do health insurance premiums go up even if I don’t make any claims?
Premiums can increase due to overall rising healthcare costs and changes in insurance regulations, not just because of your personal claims.
Q. Can I negotiate my health insurance premium?
You might not be able to negotiate directly, but comparing different plans and insurance companies can help you find a better rate.
Q. How often should I check my health insurance plan?
Reviewing your health insurance plan every year is a good idea, especially if your premiums go up or your health needs change.
