With a population of around 9.6 million, the health insurance penetration in the UAE region is increasing. As per DHA, the Dubai health insurance market accounts for 48.07 percent of health insurance in the UAE and this grew to 58 percent in 2020. Another report by International Travel and Health Journal stated that the health insurance market in UAE reached US $6.6 billion in 2020 and is expected to exhibit stronger growth in the years to come. Thanks to the government-funded support and swiftly evolving private healthcare division which are delivering superior quality of healthcare provision to the UAE population.
The fact that health insurance policies are an indispensable part of the healthcare infrastructure, can’t be turned down. Also, a recent survey conducted by Policybazaar.ae in the month of November last year found around 62 percent people in UAE have started buying individual health insurance with critical illness riders. Citizens buy individual health insurance to cover themselves from the exorbitant medical and surgical expenses. The costs incurred during the policyholder’s treatment are either paid in advance or reimbursed by the insurance company depending upon the pre-decided policy terms and conditions of the health insurance policy. In the UAE, 15 percent of lives insured are via Individual policies. However, this percentage has increased over the years due to two main factors: firstly, the pandemic did push clients to renew policies and look for comprehensive coverages, secondly, group health policies pushed the client to avail tailored plans and cost-saving benefits.
Half a decade prior to 2020, digitalization was slowly being integrated into medical records, telemedicine, wellness apps but its integration into comprehensive health insurance processes had been passive and rather more challenging. The pandemic’s dangers accelerated the digitalization trend substantially and sparked some new initiatives. Most insurers started integrating digital technology investments to automate several processes and effectively maintain their business flow. Even today, two years later multiple companies in the Middle East are actively helping insurers with digital distribution platforms to integrate cutting-edge technologies such as artificial intelligence, machine learning, and predictive analytics in order to strengthen the drive to transformative modernization.
Apart from digitalization and emerging technologies, insurers are extensively leaning on data sources to drive coherence, strengthen cybersecurity, and concentrate more towards improving the customer experience. All this can be achieved by integrating automation, providing transparency, customizing services whenever required. Also, insurers are moving towards segmentations, again thanks to the power of digitization and data which enables this transition from generic fit for all plans to more meaningful and tailored plans loaded with benefits for the policyholders. Even the regulators in the region took steps to strengthen the industry. Even TPA’s (Third party administrator) have engaged with locals and expats on preventive health, wellness, and mental health avenues. All these changes emerged at the beginning of 2020 during the pandemic, continued through 2021 are likely to sustain in 2022 and decades beyond.
Another trend is inclined towards the rapidly-evolving consumer products and their purchase preferences. Wearables, such as smartwatches, smart bands, and devices like blood glucose monitoring devices, cardiac monitoring devices, etc. have been around for several years; however, it was the pandemic that sparked a major increase in their demand. The global wearable healthcare market is projected to reach USD 30.1 billion by 2026 from USD 16.2 billion in 2021, at a CAGR of 13.2 percent. Though consumers in the UAE are more optimistic about a quick recovery. Additionally, wearable devices can also screen and disseminate health knowledge, they have the capability for tracking and providing mental health by tracking an individual’s perception and mood in real-time, thus enabling personalized intervention. Features like these and other similar applications are boosting the demand for wearables. Most hospitals/healthcare facilities are currently expanding patient monitoring to home care settings or other temporary setups to provide optimal care.
Neeraj Gupta is CEO at Policybazaar.ae.
The opinions expressed are those of the author and may not reflect the editorial policy or an official position held by TRENDS.