Trends and challenges for UAE’s health insurance industry in 2024: Gargash Insurance

Trends and challenges for UAE’s health insurance industry in 2024: Gargash Insurance

Inclusion of mental health, preventive care are among the other trends likely to dominate the industry in 2024

Published: Fri 29 Dec 2023, 10:05 AM

Medical inflation has been a defining feature in the health insurance industry over the last couple of years and is likely to dominate conversations in 2024 as employers renew medical contracts for employees, said Rajendran Murkkoth, Deputy Managing Director at Gargash Insurance.

"Medical insurance premiums for employees constitute a significant financial outlay for any corporation. Hence, the rising cost of medical care has become a major concern for corporations and SMEs. Some employers are forced to reevaluate the benefits extended to their employees through corporate covers. In 2024, it would be imperative for employers to monitor claims experience over time, understand plan features important to their workforce, and create an intentional strategic plan to manage costs over the long term," he said.

Needless to say, cost containment will be the fine balancing act for employers and healthcare insurers next year, not just in the UAE but globally. According to a recent study by Mercer, more than two dozen countries are forecasted to see double-digit rate increases on average over 2022, 2023, and 2024 for employer-sponsored health insurance. The study