New report covers Medical Insurance inflation in Dubai
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New report covers Medical Insurance inflation in Dubai

UAE Medical Insurance, working in conjunction with Pacific Prime, has released their annual report on medical insurance inflation. Featuring locations like Dubai, the report provides a strong global overview and justification behind International Private Medical Insurance inflation in 2015.

In a world where very few things are certain, one thing that we can be fairly certain of is inflation, and there are perhaps no industries in which this is truer than those of medicine and insurance. While it may be true that individual health insurance companies may see the occasional lowering of premiums in particular territories, it is basically undeniable that global health insurance prices are going to rise each year.

Now, Pacific Prime in conjunction with UAE Medical Insurance, has yet again prepared its annual report on inflation within the global International Private Medical Insurance (IPMI) market specifically. For the 4th consecutive year, we are making the report available to the public for free, and it is available now.

About this year's IPMI report

A big difference between this year’s iteration of our IPMI report versus previous years is the format. In order to present the information in a more convenient and easily absorbable way, the report will be primarily viewed via an innovatively designed website, as opposed to a static report in PDF format. Of course, for those that prefer the old format, PDFs will also be available.

Additionally, it should be noted that the 2015 report examines IPMI inflation using the same regions, countries, insurance companies and plans as before where possible.

The ever-changing nature of the insurance landscape has presented us with plenty of new plans and company merger, which means the report has had to change a bit. Another way in which it has changed is the inclusion of a breakdown of how global IPMI inflation follows Consumer Price Index inflation around the world.

Finally, the report will now take an even more in-depth look at the main factors leading to IPMI inflation.

Global IPMI inflation

In 2015, it was found that, on average, IPMI plan premiums went up by 9.2%, which is much higher than the 7.1% average from 2014. As the graph below shows, annual premium increases had been decreasing until this past year. While this fact is interesting on its own, when IPMI inflation is compared to Consumer Price Inflation (CPI), an intriguing trend can be found: IPMI inflation is about 5% higher than CPI a large majority of the time.

IPMI Inflation compared with Global CPI 2015

IPMI inflation in Dubai

Dubai saw insurance premiums for IPMI rise by an average of 9.5% in 2015, which is a slight rise over 2014's 7.2% average inflation. Inflation in Dubai is especially noteworthy when comparing IPMI inflation to the Consumer Price Inflation of 2.50% seen in March 2015. Consumer Price Inflation hovered near 0% from 2009 to 2013, and has risen to its current level only in the past 3 years. At the same time, IPMI inflation seems to largely be influenced by, and even parallels, worldwide IPMI trends.

Drivers behind IPMI Inflation

The notion that IPMI inflation follows worldwide CPI, yet not country-specific CPI, raised some poignant questions as to what impacts IPMI inflation, as well as how the consistent 5% difference can be explained. While the report does cover this, Pacific Prime believes that there is one major answer to these two questions: the cost of medical care.

IPMI Inflation in Dubai

Pacific Prime believes that the main driver behind IPMI inflation is the rising cost of medical care. According to an Aon Hewitt report from early 2015, medical costs increased by 10.15%, which is similar to the increase in IPMI inflation. The cost of medical care is rising in many countries, and this is mirrored by IPMI premium movement.

In the report, four factors behind the medical inflation that has such an impact on IPMI inflation are identified:

  • New medical technology
  • An imbalance of healthcare resources
  • Rising salaries for healthcare professionals
  • Overuse of healthcare

The report covers more about these items at the beginning of the report.

To view the report, please checkout Pacific Prime's website where you can read it online or download a PDF version for reading and printing. And as always, please feel free to contact us if you have questions about your premiums and inflation.



UAE-Medical-Insurance is owned and operated by Pacific Prime Insurance Brokers LLC who is regulated and licensed by the UAE Insurance Authority (license number 266).

Registered Office: PO Box 391195, Dubai, UAE