UAE residents can now freeze insurance premiums for 5 years as healthcare costs soar

Dubai: UAE residents will now be able to lock in their health insurance premium for up to five years under a new add-on launched by Policybazaar.ae, the company announced Monday.

The online insurance marketplace said its new “Health Insurance Premium Lock” feature allows customers to freeze their premium at the price they initially sign up for, regardless of annual medical inflation or age-related premium increases.

The new add-on is designed to keep premiums unchanged for up to five consecutive years, even if customers age into a higher premium bracket during that period.

Neeraj Gupta, CEO of Policybazaar.ae, said: “Renewal season should not be a moment of anxiety, it should be a formality.”

He added: “The price you see when you first sign up, that is the price you carry forward.”

The add-on is currently available on selected health insurance plans for residents in Dubai and the Northern Emirates, it said. The add-on is available to adult policyholders up to the age of 60 who do not have declared pre-existing medical conditions.

Customers can add the feature while purchasing eligible insurance plans on Policybazaar.ae.

Rising healthcare insurance costs

Health insurance costs in the UAE have steadily risen in recent years due to medical inflation and age-band pricing, where premiums increase once policyholders move into a higher age bracket.

According to Policybazaar.ae, medical inflation in the UAE typically ranges between 5 and 10 per cent annually, while age-band loading can increase premiums by as much as 20 to 25 per cent after milestone birthdays.

The company said many customers faced higher renewal prices despite not making any claims or having pre-existing medical conditions.

Data from Policybazaar.ae’s customer base showed that nearly 40 per cent of customers who saw premium increases at renewal had not made a single claim and did not have pre-existing illnesses.

Toshita Chauhan, Chief Business Officer at Policybazaar.ae, said one of the most common customer complaints during renewals was unexpected price increases.

“The moment you buy it, whatever your age, whatever your plan, that premium is yours to keep for five years,” she said.

The launch also comes as healthcare costs continue to rise globally, with insurers across markets adjusting premiums to account for inflation, higher treatment costs and increased healthcare utilisation.

In the UAE, health insurance is mandatory in Dubai and Abu Dhabi. Recently, the UAE launched a unified national health insurance system for Emirati citizens, consolidating previous emirate-specific programs (such as Thiqa, Saada, and Enaya) under a single federal framework.

This system ensures comparable healthcare benefits, emergency care, and chronic disease coverage across all seven emirates. Emiratis can easily access primary and hospital care in any emirate without procedural bottlenecks.