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UAE: Residents to now pay more for health insurance as premiums rise up to 35%

Health insurance rates have been steadily increasing since the pandemic by 15 per cent to 20 per cent every year due to medical inflation

Published: Tue 7 Nov 2023, 6:00 AM

Updated: Tue 7 Nov 2023, 10:38 PM

UAE residents will have to shell out more for their health insurance premiums as nearly a dozen companies have increased premiums by up to 35 per cent in the last two months.

“Rates started to increase as early as August 2023 and continued into September and October. The latest rate revision for an insurer happened around mid-October. The average pricing has increased between 10 per cent to 35 per cent, depending on the age of the applicant,” said Toshita Chauhan, business head for health and motor insurance at PolicyBazaar.ae.

Industry executives say that health insurance rates have been steadily increasing since the pandemic by 15 per cent to 20 per cent every year due to medical inflation.

In the UAE, compulsory health insurance was introduced a few years back and the employer is obliged to provide employees with health insurance coverage. However, if the employer is not providing insurance for children, then parents will have to purchase health insurance for them as they are under their sponsorship.


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The UAE boasts a world-class health insurance sector which has been attracting a lot of health tourists as well into the country. Dubai alone received 674,000 medical tourists last year, spending Dh992 million, an increase of Dh262 million from the previous year.

Chauhan revealed that the minimum premium with the Dubai Health Authority (DHA) basic plan for employees earning below Dh4,000 monthly has not changed.

However, the new pricing for basic insurance in regards to employees earning above Dh4,000 monthly has increased by 10 per cent for married females between the ages of 18 to 45. While those sponsored by their husbands, the pricing has increased by 20 per cent to 30 per cent, added Chauhan.

Moin Ur Rehman, executive director of Unitrust Insurance, said premiums for basic plans remain unchanged, however, premiums for standard plans which are age banded have increased.

“This increase in premiums can be attributed to several factors, such as cost pressures brought about by medical inflation, increasing cost of medical treatments, drugs, and medical technology, as well as the ageing population and the prevalence of chronic diseases. Any negotiations that are conducted between insurance companies and healthcare providers are based on the DHA-approved gross price list hence increased rates are very much approved by the DHA,” said Rehman

Toshita Chauhan suggested that residents should purchase an insurance plan as soon as possible, not just due to concerns about rising rates but also to make sure that they’re covered in case of an emergency.

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