As with the regional inflation reports of previous years, the Middle East has one location included in this report: Dubai. Historically, IPMI inflation in Dubai has closely tracked global IPMI inflation and Pacific Prime believes that this remains largely true for 2016. The problem however is that we don't actually have reliable inflation data for 2016 available for Dubai.
The primary reason for this is due to the final implementation of the Dubai Health Authority's (DHA) reforms legislating mandatory health insurance coverage for all residents in the city. Because of the DHA reforms insurers had to implement new plans in 2016 in order to remain compliant in the city.
This need for compliance has resulted in a significant change in insurer behaviour in Dubai. This has made comparing previous years’ data difficult, and we attribute this to the following:
- Four insurers from the previous years’ reports no longer offer plans in Dubai
- Mandatory coverage has seen a big uptake in insured numbers
- Those insured with less than compliant policies have had to upgrade their plans
- Insurers have had to adjust their plan packages and premiums as a result of the additional risk brought by the DHA reforms
The Dubai section explains more about how these factors have impacted this year’s report.