Health insurance rates may rise this year in the UAE

Insurance companies in the UAE could raise their health rates this year in case there is a fresh increase in the costs of medical services, a newspaper said on Sunday.

Steady rises in medical costs over the past few years and abuse of health insurance by some people have inflicted losses on many companies in the health insurance sector, the Dubai-based Arabic language daily 'Emarat Al Youm' said.

“A large number of health insurance firms suffered losses last year,” it said, quoting Omar Al Amin, CEO of Orient Insurance.

“Any new increase in the costs of medical services this year will directly affect health insurance rates.”

The paper quoted another insurance executive as saying the costs of medical services have steadily risen over the past five years.

“It has become an annual phenomenon with or without any justification…we have no problem with this if it will mean better and more developed medical services for the patients,” said Hazim Al Madi, CEO of Green Crescent Insurance.

He said insurance firms have no choice but to raise their rates to cope with costlier medical services and avert further losses.
“Other factors contributing to losses include unfair competition by some companies and excessive, unnecessary medical services offered by some hospitals to patients.”

'Emarat Al Youm' quoted another insurance expert as saying there could be fresh insurance rates this year because of costlier medical services. “Insurance companies are institutions which seek profits and this means any new rise in medical costs will lead to higher insurance rates…I think it is time for authorities to intervene and regulate this sector,” said Khalil Saeed, operations manager at Methaq company.