Health and Motor Insurance Premiums Set to Rise as Dubai Enhances Coverage
Starting January 1, 2025, insurance premiums for health and motor insurance will rise in Dubai, as insurers adjust their rates in response to rising healthcare costs, vehicle repair expenses, and inflation. The premium hikes will be accompanied by enhanced benefits for residents.
Premium Hike Across Sectors
As inflation continues to affect global prices, Dubai’s insurers are raising premiums to keep pace with increased healthcare and vehicle repair costs. Industry experts predict a more substantial increase in health insurance premiums compared to the motor insurance sector, which saw a surge in premiums in 2024.
Avinash Babur
CEO of Insurancemarket.ae
Avinash Babur, explained that the increase reflects a shift in the cost structures and claim patterns seen over the past year. With the removal of pandemic-era discounts, health insurance premiums are expected to rise by 10-15% due to healthcare inflation and growing medical service costs. For motor insurance, a more modest increase of up to 5-20% is anticipated, depending on the benefits included in the coverage.
New Benefits for Dubai Visa Holders
Moin ur Rehman
Executive Director at Unitrust Insurance Broker
Moin ur Rehman, highlighted the introduction of additional benefits for Dubai visa holders that will impact claim settlements for new and renewal policies starting in 2025.
Toshita Chauhan
Business Head at Policybazaar.ae
Toshita Chauhan, shared that health insurance revisions would focus on enhancing coverage quality, but there are no mandatory changes in motor insurance premiums as per the latest Dubai Health Authority (DHA) circular.
What This Means for Residents
Residents in Dubai can expect an increase in premiums, with additional benefits rolled out with the hikes. Health insurance premiums may increase by up to 20%, while motor premiums will experience more modest changes. Toshita Chauhan recommends that residents considering enhanced benefits wait until January 1, 2025, to secure revised coverage options.
When to Purchase or Renew Insurance
With premiums set to rise, it’s recommended to renew policies before they expire to avoid higher rates and penalties. Babur emphasized that while timing matters, the right policy should be chosen based on coverage needs. Those looking to save should act quickly before January 1, while those seeking more comprehensive coverage may want to wait for the enhanced benefits in 2025.
With premium hikes and new benefits on the horizon, Dubai residents should plan their insurance purchases and renewals carefully. The upcoming changes reflect the evolving needs of the market and the aim to maintain a balance between affordable coverage and financial sustainability for insurers.
