Market Trends of MENA Health And Medical Insurance Industry
Health Challenges and Rising Demand for Insurance in the Region
Modern lifestyles, characterized by hard labor, poor eating habits, insufficient sleep, and sedentary behavior leading to obesity, are indirectly fueling the growth of the healthcare and insurance sectors. In the United Arab Emirates, alarming statistics reveal that 27% of adults grapple with obsessive behaviors, and over 68% are classified as overweight. These lifestyle choices have paved the way for chronic conditions, notably diabetes, cancer, and cardiovascular diseases.
Moreover, the financial burden of medical care exacerbates these risky lifestyles, jeopardizing public health. This scenario has spurred the growth of individual insurance plans, aiming to alleviate the financial strain on citizens. Health insurance mandates in countries like Saudi Arabia and the UAE underscore the rising significance of personal insurance. Government-sponsored health insurance is available to all residents in Abu Dhabi and Dubai. The Ajman government extends health insurance to every employee, and both Abu Dhabi and Dubai mandate companies to provide health insurance coverage for their staff.
Egypt's Push for Universal Health Coverage
Aligning with the UN's Sustainable Development Goals (SDGs), the Egyptian government prioritizes healthcare enhancements and the population's health. Universal Health Insurance (UHI), a key player in Egypt, ensures the population has access to insurance and medical services. This commitment guarantees that every Egyptian can utilize a publicly funded healthcare system and receive essential medical treatments. Funding for the UHI system comes from diverse sources: state budgets, federal subsidies for low-income individuals, general and tobacco-designated taxes, copayments (service fees), and premiums from the nation's residents.
Under the Universal Healthcare Act, Egypt is elevating the quality of insurance services and infrastructure. This act introduces a smart card system for claims, upgrades medical facilities, and extends insurance coverage to family members. Additionally, the World Bank is bolstering Egypt's efforts with a USD 400 million investment aimed at fortifying the universal health insurance framework. This financial backing is pivotal for realizing universal health coverage (UHC) and enhancing the quality of public healthcare through the transformation of the UHIS.
