Dubai-Mubasher: UAE’s insurance sector is expected to see a greater adoption of medical insurance policies, higher uptake of pension schemes, and increased penetration of individual savings plans in 2016, according to Nexus Group.
The UAE’s insurance sector, led by medical insurance, is set to witness continuous growth, bolstered by regulatory reforms and increased community awareness, said Tarun Khanna, CEO of Nexus Group.
“During the last recession many businesses learned the lesson the hard way when they were forced to shut down and did not have the cash flow they needed to pay off their employees end of service settlements,” according to Khanna.
The International Monetary Fund urged Arab Gulf governments earlier this year to reduce spending and diversify revenues in response to lower oil prices, a move that could affect projects, wages, and employment.
The Dubai Health Authority rolled out compulsory medical insurance in 2014, which is expected to provide coverage for all Dubai residents by 2016, taking the number of covered individuals from 1.5 million to 4 million, according to Alpen Capital’s 2015 regional industry report.
