UAE Health Insurance Market Report

UAE Health Insurance Market Overview:

The UAE health insurance market size reached US$ 8.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.6 Billion by 2032, exhibiting a growth rate (CAGR) of 6.4% during 2024-2032. There are various factors that are driving the market, which include rising need for enhanced healthcare services among patients, increasing population, favorable government initiatives and regulatory framework, and various collaborations and partnerships among numerous companies.

UAE Health Insurance Market Analysis:

• Major Market Drivers: One of the key market drivers are technological advancements. Moreover, the increasing healthcare costs are acting as a growth-inducing factor.
• Key Market Trends: There is a rise in the need for enhanced healthcare services among patients. In addition, favorable government initiative and regulatory frameworks are propelling the market growth.
• Competitive Landscape: Some of the major market players in the UAE health insurance industry are provided in the report.
• Challenges and Opportunities: One of the key challenges hindering the market growth are data security and privacy issues. On the other hand, the increasing need for digital health care solutions represents some of the UAE health insurance market recent opportunities.

UAE Health Insurance Market Trends:

Rising Need for Enhanced Healthcare Services Among Patients

The growing adoption of health insurance due to the increasing need for enhanced healthcare services among patients is positively influencing the market growth. People are increasingly adopting healthcare insurance because they are suffering from various chronic diseases, such as heart diseases, diabetes, asthma, arthritis, and obesity. They are facing these issues due to their changing lifestyles and poor dietary patterns. Health insurance coverage supports ongoing management and treatment of these conditions, including medications, regular check-ups, and specialist consultations that assist in improving health outcomes and reducing healthcare costs in the long run, which is offering a positive UAE health insurance market outlook. Apart from this, major players are providing a range of ideas to satisfy the needs of individuals while meeting their specific preferences. For example, the Hyakum Digital Booth, a visionary concept intended to redefine health insurance accessibility and improve user service in the UAE, was launched on 27 March 2024, in Dubai by e& enterprise and The National Health Insurance Company–Daman, a part of PureHealth, the largest integrated healthcare platform in the Middle East. The Hayakom Digital Booth is a first in the global health insurance sector, which helps in unparalleled around the clock insurance service accessibility. This pioneering venture is set to commence with a Proof of Concept (POC) in two prime locations, leading to an ambitious expansion to over 20 sites within three years. Harnessing the synergy of the Internet of Things (IoT) and artificial intelligence (AI), the state-of-the-art self-service health insurance kiosks will be ingeniously connected to a central command center, ensuring maximum operational efficiency and a high service experience. The kiosks will feature Emirates biometric and identity verification, interactive touchscreens, high-security video surveillance, and advanced document scanning, all supported by a robust data infrastructure powered by fifth generation (5G).

Increasing Population

The rising focus on preventive healthcare services is contributing to the UAE health insurance market growth. Health insurance plans include coverage for preventive care services such as screenings, vaccinations, and wellness programs. This focus on preventive healthcare encourages individuals to prioritize their health and well-being, leading to earlier detection and management of health issues, ultimately reducing the need for more extensive and costly treatments. In line with this, the rising population, along with the prevalence of chronic diseases in the region, increases the need for health coverage. Health insurance mitigates the financial burden on any one individual or insurer when it comes to covering healthcare expenses. On 20 May 2024, the UAE population is anticipated to reach 5.8 Million by 2040, as stated by The National News UAE.

Favorable Government Initiatives and Regulatory Framework

Governing agencies in the UAE are implementing initiatives and regulatory frameworks, which is bolstering the market growth. They are focusing on mandating health insurance for all residents, which increases the demand for health insurance products. Regulations continue to evolve, impacting the market dynamics and driving innovation, thereby increasing health insurance demand in UAE. On 16 February 2023, The Department of Health–Abu Dhabi (DoH), the regulator of the healthcare sector in the Emirate, in cooperation with Abu Dhabi Department of Economic Development (ADDED), introduced a flexible health insurance option in Abu Dhabi. The newly launched option seeks to elevate the Emirate’s position as an attractive destination for entrepreneurs and investors that seek to live and work in the Emirate as well as broaden access to world-class healthcare services for all community members in accordance with the highest standards of quality and efficiency. The flexible health insurance policy targets current and future entrepreneurs and investors while attracting more investments in the Emirate of Abu Dhabi to fulfill the rising need for insurance plans among the masses in the UAE. The new flexible health insurance policy provides entrepreneurs, investors, and others with an insurance option at a low and competitive cost, while flexible insurance holders can upgrade their insurance coverage in agreement with the insurance provider.

Various Collaborations and Partnerships Among Companies

The rising focus on collaborations, partnerships, and mergers and acquisitions (M&As) is supporting the market growth. These initiatives benefit in introducing new insurance plans that cater to the unique needs of a diverse population, while increasing UAE health insurance market revenue. For example, on 8 February 2023, Sukoon, formerly Oman Insurance Company, one of the leading insurance providers in the UAE, in continuation of its partnership with Aster DM Healthcare, one of the largest integrated healthcare service providers in the GCC and India, launched two new health insurance plans that are designed to meet the needs of large to mid-sized corporates as well as individuals. Affordability and accessibility often pose a barrier to corporate employees and individuals taking positive steps to improve their physical well-being. To address this, Sukoon and Aster DM Healthcare have launched two innovative healthcare plans to offer access to a wider network. The two new health insurance plans, ‘Shield Saver’ and ‘Shield Saver Plus’ are designed for enhanced convenience and accessibility for individuals. Both plans feature access to a wider network, tapping into Aster DM Healthcare’s strong geographical presence. In addition, members will have access to round the virtual care with 0% co-pay on consultations, lab reports, radiology, and prescribed medicines through the myAster mobile app.

UAE Health Insurance Market Segmentation:

IMARC Group provides an analysis of the key UAE health insurance market trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and service provider.

Breakup by Type:

• Individual
• Group
   

Group accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes individual and group. According to the report, group represented the largest segment.

Group health insurance plans are often provided by employers as part of their employee benefits package. They operate on the principle of risk pooling, which means that the premiums paid by all members of the group are pooled together to cover the healthcare expenses of the entire group. This spreads the risk across a larger number of people, which can help lower costs for individual members. Additionally, group health insurance plans often have lower premiums as compared to individual health insurance plans. This is because the risk is spread across a larger group of people, which can result in cost savings for both the insurer and the insured members. Furthermore, they help promote a healthy workforce and reduce absenteeism, provide financial protection for unexpected medical expenses, and offer a variety of coverage options to fit the needs of the group.

Breakup by Service Provider:

• Public 
• Private
   

Private holds the largest share of the industry

A detailed breakup and analysis of the market based on the service provider have also been provided in the report. This includes public and private. According to the report, private accounted for the largest UAE health insurance market share.

Private health insurance service providers create and offer a variety of health insurance plans to cater to different needs and budgets. These plans cover a range of medical expenses including hospitalization, doctor visits, prescription medications, diagnostic tests, and other healthcare services. On 19 March 2024, the UAE implemented a nationwide mandate requiring private sector employers to provide health insurance coverage to employees and domestic workers who currently lack such benefits. The decision will be enforced mandatorily starting January 1, 2025. This decision presents numerous advantages for all parties involved. For employees, it ensures guaranteed coverage; for insurance companies, it translates to increased revenues, and their risk pools will expand; and for the healthcare sector, it offers an incentive to enhance healthcare infrastructure nationwide.

Competitive Landscape:

• The market research report has also provided a comprehensive UAE health insurance market analysis of the competitive landscape. Detailed profiles of all major companies have been provided.
• Industry players in the market are providing customizable plans that allow individuals to tailor their coverage based on their specific healthcare needs and financial capabilities. This can include options for deductibles, coverage limits, co-payments, and additional benefits such as dental, vision, maternity, or wellness programs. Besides this, they are forming alliances and partnerships to provide enhanced services to end users. For instance, on 30 April 2024, AXA-Global Healthcare entered into a partnership with The National Health Insurance Company-Daman, the largest health insurer in the UAE, to offer a new leading International Private Medical Insurance (IPMI). Tailored for businesses with a global workforce, the premium healthcare plans help employees access the best care worldwide, wherever their assignment takes them. The new global healthcare plan is a locally licensed and compliant product administered by Daman, and internationally supported by AXA–Global Healthcare. The partnership marks a vital step in the global growth agenda for AXA–Global Healthcare.

UAE Health Insurance Market Recent Developments:

• 19 January 2023: Dubai National Insurance (DNI), one of the leading Insurance companies in UAE, partnered with Takalam, an award-winning mental health and well-being platform, offering private and easy access for individuals to choose from a variety of mental health professionals, tools, and solutions. The partnership reflects DNI’s efforts to help promote the importance of mental health and the need for support of individuals battling with anxiety, depression, or simply in need of professional counselling. Users can book sessions with a professional directly on Takalam’s mobile application.

UAE Health Insurance Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, UAE health insurance forecast, and dynamics from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE health insurance industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of top UAE health insurance companies.