Mandatory health insurance for employees in UAE came into effect on 1 January 2025, making it an essential component of employee benefits.
While this adds a new statutory burden on employers, finding the right group insurance for employees can bring a host of benefits to your entire organisation.
The major strategic advantage of providing meaningful coverage is your employees are more likely to stay healthy, productive and loyal. At AES Health, we specialise in advising companies on how to approach employee healthcare insurance in a way that’s financially sustainable.
In this blog, we'll take a deep dive into what that means for you.
Read on to unpack how getting the right benefits, with the right insurer, at the right cost, can also mean improving outcomes for your business and your people.
What are the benefits of employee healthcare insurance in UAE?
Employee health insurance advantages go far beyond cost savings. Here are some of the most practical benefits:
- Simple and centralised coverage
- Stronger employee retention
If staff are your greatest asset, you can show their value with comprehensive corporate medical cover. This increases loyalty and engagement and can reduce the rate of staff turnover (‘churn’) and the associated time and cost of new hires.
- Better access to care
The faster your workforce can access care when they are sick or injured, the lower the impact on your capacity. Granting access to a wider network of hospitals and clinics, priority appointments and faster referrals result in fewer delays and faster recoveries.
- Lower out-of-pocket costs for employees
If your employees are liable for medical bills, it can be very stressful and add to the physical and emotional toll they may be experiencing. Knowing they are fully covered with access to employee healthcare insurance benefits creates peace of mind and greater productivity.
For employers, group plans are often more affordable and easier to manage than individual ones. They do not have to reimburse individual employees at different times of the year, easing the burden on cash flow.
- Fewer sick days
Another key benefit of mandatory health insurance for employees in the UAE is employees are more likely to seek care. This can mean more preventative screenings that catch health issues early. When people can be proactive about their health, long-term productivity improves.
- Tax efficiency for your business
While business health insurance in the UAE requires a substantial outlay, there are tax breaks. Premiums can be treated as business expenses and will form part of your financial reporting for the year, helping offset your tax bill.
- Employer brand value
Your reputation as a brand not only matters to customers and clients, but is a key component in your relationship with your current and future staff.
Choosing a plan that delivers strong employee health insurance advantages will help you attract top talent by showing you invest in your people.
Healthcare services group health insurance provides
Now we have explored why comprehensive group insurance for your employees is worthwhile, let’s look at what that coverage looks like.
A negotiated group policy means your employees will typically enjoy greater access to a broader range of services than they would on a basic individual plan. Group plans usually include core employee healthcare insurance services. Some examples:
- GP consultations and specialist visits
- Diagnostic testing and lab work
- Maternity care and paediatrics
- Surgical procedures and hospitalisation
- Emergency care and ambulance services
Better plans may also include:
- Mental health support
- Preventative screenings
- Optical and dental coverage
Ask yourself: Do your employees know what’s included in their company insurance plan? If not, it may be time to review how you communicate benefits.
The AES Health approach to group cover
Most brokers stop at three quotes.
A company delivering true guidance and advice doesn't.
AES specialises in UAE group health insurance benefits for companies that want more than the minimum. Our focus is not on selling you the cheapest plan.
It’s about helping you choose the right plan for your workforce, one that fits your needs today and remains financially sustainable over time.
AES’s specialism in group medical insurance allows us to work closely with HR leaders and senior management as true, qualified and knowledgeable advisers.
We begin with understanding:
- Where your employees live and work
- The hospitals and clinics they prefer
- The level of service they expect
- Your current cost challenges
The next step goes a step deeper, covering:
- Network suitability
- Pricing and co-payment structures
- Claims experience and renewal risk
Our role is to support you with strategy, not just quotes. That includes:
- Reviewing historical claims data
- Optimising coverage to avoid both over-insurance and under-insurance
- Designing plans with long-term cost control in mind
AES believes ‘prevention is better than cure’.
As a result, it has a dedicated wellness team who create programmes and year-round initiatives for your staff to promote a more informed and healthier workforce - online, onsite and offsite.
From blood sugar checks and optical screenings to fitness sessions and nutrition workshops, our wellness calendars are built to reduce your claims and improve outcomes.
Where medical emergencies occur, we’re by your side.
Our 24/7 support ensures your employees get help when they need it most.
How to start a group health insurance plan in UAE
Getting started doesn’t have to be complicated. Here’s how you can begin:
- Set your objectives
- What do you want this plan to achieve?
- Are you trying to reduce turnover, control costs, or improve engagement?
- Know your employee demographics
- How many employees do you have?
- What are their age brackets and dependants?
- Understand your budget range
- Be honest about what’s financially sustainable.
- Focus on long-term affordability, not just year-one pricing.
- Partner with the right adviser
- Choose a firm that specialises in group medical cover.
- Ask how they help with claims, renewals, and employee education.
- Request tailored plan comparisons
- Don’t settle for generic quotes that can be obtained from comparison websites.
- Ensure the options presented to you truly reflect your staff insurance needs, and don’t just suit the broker’s business.
- Review and educate your team
- Share what’s covered, what’s not, and how to use the policy.
- Make sure employees feel confident navigating the system.
Why sustainability matters in group cover
Health insurance is your second-largest people cost after payroll. Premiums are rising year on year. So, how do you control that?
A major step in the right direction is having the correct oversight to track usage and claims patterns.
This allows you to adjust benefits based on actual needs and promote preventive care that reduces claims frequency, impacting both your premium and productivity levels.
At AES Health, we build wellness calendars with clients that include:
- In-office health screenings
- Blood pressure and cholesterol checks
- Nutritional workshops and physical activity initiatives
The result is a workforce that uses the plan less because they’re healthier overall.
That reduces cost and improves performance.
Who should consider group health insurance in UAE?
Group insurance for employees is mandatory for all companies in the UAE.
However, providers offer a broad spectrum of plans, from basic coverage up to plans that include dependents. In some cases, basic coverage may suffice, but to derive the most benefit for your business and its staff, choose a comprehensive plan.
This is particularly advisable if you fall into these categories:
- Businesses with 20+ staff
- Companies in competitive hiring markets
- Organisations facing rising healthcare costs
- HR teams managing renewals and claims internally
If you’ve outgrown basic cover, you’re not alone.
Many UAE employers are now looking for structured advice, not just policies.
Ready to get more out of your health insurance for employees in the UAE?
Health insurance for employees in the UAE is a legal requirement, but with the right partner, it can become a strategic advantage for your organisation.
Group cover offers real employee health insurance advantages that make a difference to your employees’ lives and their relationship with your business.
It’s time to look beyond the basic cost and review plans based on usage, not assumptions or short-term savings. A sustainable plan supports your staff and protects your bottom line on an ongoing basis.
At AES Health, we are focused on employee healthcare insurance that delivers long-term results. Speak to our team today to find a smarter way to approach group insurance.
