Paid compensations for medical insurance hit AED9 billion in UAE
The volume of paid compensations in the UAE’s medical insurance sector amounted to AED9.3 billion last year, according to a report.
The report issued by the Insurance Authority says that paid compensations accounted for 87.8 per cent of the total earned premiums, which amounted to about AED10.6bn, reports UAE-based Aliqtisadi.
According to the annual report, compensations include amounts paid by insurance companies directly to medical providers and others out of the total earned premiums collected by dealers.
These compensations do not include the administrative expenses of the insurance companies, operational costs and the commissions of intermediaries, it adds.
National insurance companies paid the bulk of the compensations, which amounted to approximately AED7.5bn, 90.1 per cent of the total collected premiums, which amounted to AED8.3bn.
Meanwhile, foreign insurance companies operating in the country paid AED1.8bn compensations of the total premiums amounted to AED2.2bn, at a rate of 79.4 per cent.
The volume of total funds invested in the insurance industry reached AED39bn, a growth of 3.2 per cent in 2014, while the total shareholders’ equity of the national insurance companies reached AED 19.8bn, up by 13.1 per cent.