Mental Health Insurance Premiums Surge in UAE Amid Growing Demand
Mental health insurance premiums in the UAE are witnessing a yearly increase of 10 to 15 percent, and this trend is expected to continue in 2024. Insurance industry executives attribute this rise to the growing demand for mental health insurance among UAE residents, driven by increased awareness in the post-pandemic period.
Anas Mistareehi, founder and CEO of eSanad, stated that mental health insurance premiums have been increasing post-pandemic by 10 to 15 percent every year due to medical inflation. He anticipates this trend to persist in 2024, prompting policyholders to pay more for their health insurance premiums. Nearly half of the insurance companies in the market have already raised premiums, and the rest are likely to follow suit as a corrective measure due to high utilization.
Moin Ur Rehman, executive director of Unitrust Insurance, noted that health insurance premiums, including those covering mental health, saw a general increase in 2023. This increase is attributed to the rising cost of medical treatments, which influences insurance premiums. Mental health treatments, often medium to long-term commitments, contribute to significant medical expenses, further contributing to the upward trend in premiums. The outlook for 2024 suggests a continuation of this trend, with no expected decrease in medical insurance premiums.
According to the World Health Organization, mental health treatment in the UAE has surged sixfold since 2020, indicating a growing need for mental health services. Rehman highlighted that heightened awareness of mental health issues, societal shifts, and an influx of residents from countries where mental health awareness is more normalized have contributed to the increased demand for mental health insurance.
Anas Mistareehi emphasized that the demand for mental health insurance has risen due to an increase in mental health treatments, particularly since the Covid-19 pandemic exacerbated many people's mental health challenges related to financial and relationship concerns.
eSanad provided information on mental health coverage, stating that it starts with a base coverage beginning at Dh950, while enhanced plans with a broader coverage range start from Dh3,000. The Dubai Health Authority (DHA) sets specific limits and standards for mental health coverage, which insurers generally adhere to.
However, not all health insurance plans cover mental health, and Mistareehi noted that specific mental health insurance plans may be available. Most medical insurance in the UAE covers various psychological disorders, including depression. Some insurance providers offer specialized mental health insurance plans, treating mental illnesses similarly to physical illnesses.
Rehman echoed Mistareehi's comments, adding that while not all insurance companies currently cover mental health, there is a trend towards including mental health services in more comprehensive insurance plans.
Mistareehi emphasized that individuals and companies are increasingly seeking plans covering a wide range of mental health conditions, from common issues like anxiety and depression to more complex disorders. People look for insurance plans that cover not only therapy or counseling but also preventive care, alternative therapies, and digital mental health solutions.
Rehman observed that individuals and companies typically seek plans with higher coverage limits, prioritizing coverage for psychotherapy or therapy sessions, consultations, hospitalization, and pharmaceutical treatments. Larger or multinational companies are more likely to include mental health coverage for their employees.
Overall, there is a growing recognition of the need for maximum coverage for mental health services due to the potential cost and duration of mental health treatments, which often require extensive support. While more individuals are considering options for mental health coverage, concerns about high premium costs may still influence the majority to opt for coverage without it.
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By- Sahiba Suri
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