Mandatory health insurance to have positive impact on Qatar's economy – The Peninsula
Chief Operating Officer – Deputy CEO, Seib Insurance and Reinsurance Elias Chedid (left) and Chief Underwriting Officer – Medical and Life, Seib Insurance and Reinsurance Nadia Basbous
Doha: The mandatory health insurance will contribute positively to the economy of Qatar. With 2 to 2.5 million expatriates joining the scheme the country’s health insurance sector will benefit from it and will double the employment in healthcare industry providing better quality of healthcare services and technologies, said an official during an event.
French Business Council- CCI France Qatar organised a webinar entitled ‘Compulsory Health Insurance: The Law and its implications on Expats and Business’ which shed light on the compulsory health insurance law for expatriates and visitors.
Nadia Basbous, Chief Underwriting Officer – Medical and Life, Seib Insurance and Reinsurance discussed importance of the Qatar’s law no. 22 of 2021 on the organisations, its impact on the insurance sector, economy, and healthcare providers. “Healthcare mandatory scheme is an essential part of achieving Qatar National Vision 2030. Health insurance is part of employee benefits, and this is the best and most effective way that organisations use to retain employees, keep their morale up and satisfied,” she said.
“Health insurance has an array of benefits. The law applies to expats only and we estimate that we will have around 2 to 2.5 million expats insured under the law and Qataris will be exclusively treated in the public health sector,” she added.
Speaking about the impact of the law or the mandatory scheme on the insurance sector, Basbous said, “When you have 2 to 2.5 million expats joining the scheme this will benefit insurance companies and attract more cash flow as everyone will be insured in the country. This increased cash flow and operation will end up generating higher profit which will allow companies to expand and increase their staff and be able to invest in technology. Additionally, once the insurance product is revealed this will allow companies to retain premiums inside the country which will impact the economy in a positive way”.
“So, the higher profits will improve the accounting system, solvency, capital adequacy of insurance companies and will be able to grow in other lines of business. Overall, we will have better competitiveness and improved quality of insurance services,” she added.
The scheme will contribute to around QR1.7bn to QR2.2bn to the health insurance industry including the top-ups. Employment in the sector will also double and in order to keep up with the demand the healthcare providers will have to hire more staff with better quality of healthcare and infrastructure. Also 1.5 million visitors are expected to join the scheme to attend the FIFA World Cup Qatar 2022 this year who will be insured, increasing the cash flow and generate additional spending in the insurance sector and other services as well, she explained.
Elias Chedid, Chief Operating Officer – Deputy CEO, Seib Insurance and Reinsurance explained the law, responsibilities, and accountability of this law on different stakeholders and how companies should prepare for healthcare insurance. “This law is important not only for us as an individual but also at country level because this comes as part of Qatar National Health Strategy 2020 which is also part of Qatar National Vision 2030,” he said.
Chedid added, Qatar National Vision 2030 aims at transforming Qatar into an advanced society capable of achieving sustainable development by 2030. This strategy focuses on four important pillars – environmental, human, social and economic. That is why understanding, implementing a successful healthcare strategy and health insurance program is important.
from page 1
Nadia Basbous said, “In order to keep up with the higher demands hospitals and clinics will be investing in expansion and there will be competition to attract more patients and to cope up with high number of visits. There will be better services and more technologies in the healthcare sector, and more profit is expected which will encourage employment for the healthcare providers. It will also impact the country positively as it will allow the country to play a more important role in medical tourism which will generate substantial income to the country”.
Mandatory health insurance has already been implemented in Saudi Arabia, Dubai, and Abu Dhabi. It is still in progress in Oman, Kuwait, Algeria, Jordan, Tunisia and Morocco.
