Sustained Growth Ahead for the Medical Insurance Sector in the UAE

Posted on Jun 25, 2010 by Sergio Ulloa (G+)  | Tags: Insurance Forecast, RNCOS, United Arab Emirates

A research report entitled "UAE Insurance Market Forecast to 2012" by RNCOS, an India-based market research and information analysis company, points to continued growth in the rates of the medical insurance industry in the United Arab Emirates (UAE). The report projects a Compound Annual Growth Rate of around 42% between the years 2010 and 2013. Citing the rising healthcare costs and a prospering middle-class population as growth drivers of the medical insurance industry, the report sees a promising future in the coming years, despite the growing concerns about a lack of awareness among the majority of the population. The government initiatives in place that call for compulsory medical insurance starting this year, plus demand by individuals to take medical cover support the optimistic outlook described in the report. The current insurance penetration rate of 2 percent in the UAE pales in comparison to the 5 to 15 percent rate of the US and the UK, indicating that there is great potential for growth in this area. Various innovative schemes and better coverage for urban and rural populations will tackle the low penetration rate, supported by strong economic growth and favourable demographic statistics. An overview of the insurance market structure and trends, covered in the research document, reveals the impacting role that private players are having in the rapid growth of the insurance industry in the UAE. Also covered in the report are the forecasts on various segments of the insurance industry including life insurance, accident and liability, and fire. Company mentioned: RNCOS RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. The professionals at RNCOS study and analyse the industry and its various components, with comprehensive study of the changing market behaviour. The accuracy and data precision delivered by RCOS proves beneficial in terms of pricing and time management that assist the consultants in meeting their objectives in a cost-effective and timely manner.