Dubai has jumped two places to the fourth spot in global individual international private medical insurance (IPMI) premiums, up from sixth in 2021, with an 8% increase to US$5,687, according to a report from Prime Pacific.
Additionally, Dubai has also moved up one position to the fourth spot in family IPMI premiums, with an 11% increase from 2021 to US$17,637 in 2022, the Cost of International Health Insurance 2023 report said.
As a result, Dubai remains the most expensive country in the Middle East for both individual and family IPMI premiums.
For individual IPMIs, Dubai displaced Mexico, which slipped from fourth to eighth place.
Ranked just above Dubai for individual IPMI premiums in third position was Singapore, and just below was Taiwan.
The next highest ranked Middle Eastern country was Bahrain at 12, which saw its individual IPMI premiums increase by 10% to US$5,269.
There was no other Middle Eastern country in the top 20.
For family IPMI premiums Dubai was ranked between Singapore at third and China at fifth place.
Dubai’s 11% increase in IPMI premiums for families moved it up in the rankings from 5th to 4th, causing it to switch places with China
Also in the top 20 for family IPMI premiums was Bahrain, again in 12th position, and Oman in 15th. No other Middle Eastern country was in the top 20.
Claim activity rebounding
“Lockdown restrictions and the cancellation of elective procedures during the pandemic led to a substantial reduction in claims activity for non-Covid related conditions,” the report said.
“However, claims activity is now rebounding and returning to pre-pandemic levels. In fact, 62% of insurers surveyed across the [Middle East and Africa] MEA anticipate that claims will continue to rise and may even surpass pre-Covid-19 levels,” it added.
Dubai has also secured the top position for medical tourism in the MEA and is ranked sixth globally according to the latest Medical Tourism Index.
Furthermore, the city has secured fifth position globally on the sub index of quality of facilities and services.
This reputation has led to a high demand for medical services, which has been a significant factor in the rapid cost increases seen in recent years.
But the healthcare system in the UAE is facing significant concerns related to the over-prescription of medication and identity fraud by patients, which experts estimate causes a loss of US$1bn every year, the report says.
“The culture of over-prescribing by doctors, for reasons such as receiving financial incentives for prescribing brand-name drugs, is supported by patients’ subjective experiences, with 32% of UAE patients surveyed in 2017 thinking that doctors over-prescribed medication,” the report says.
Identity fraud
Another major concern facing insurers in Dubai is identity fraud, which causes insurers to pay out more than they should as the fraudster often does not have the relevant or right level of coverage.
“Moreover, patients using false identities can potentially put themselves and others at risk, such as when the treatment they receive is based on another person’s medical history or the victim’s medical record is corrupted,” the report says.
But, overall, the future looks good for Dubai and the UAE.
“With healthcare costs on the rise worldwide, and the pandemic highlighting the importance of preventive healthcare, the UAE is redefining the benchmarks for healthcare delivery, promoting wellbeing for its entire population, and making significant strides toward achieving its healthcare goals,” the report said.
“For example, soon health insurance will be mandatory for all UAE residents.
“Additionally, the government has launched awareness-raising campaigns to educate the public about healthy living and preventative care.”