Business

First branch in Sharjah for health insurer Daman

Daman opens a new branch in Sharjah, as health insurance legislation creates business for underwriters.

Adam Bouyamourn

February 10, 2014

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Daman is set to open its first branch in Sharjah as the emirate's recent mandatory health insurance law creates new business for insurers.
The branch will be located in Crystal Plaza on Corniche Road.
Dr Sheikh Sultan bin Mohammed, Ruler of Sharjah, introduced a health insurance scheme to provide coverage for all government employees and their families last June.
In 2006, Abu Dhabi introduced mandatory health insurance coverage, which required employers to insure their employees, while Dubai introduced a similar policy in November.
The details of a national healthcare law, which has been four years in the making, are still being worked out by the Ministry of Finance, the Federal National Council was told last month.
Local health stocks have gained over the past few months as new health insurance laws create business for medical underwriters and healthcare providers alike. NMC Health, a UAE-based healthcare company, gained more than 62 per cent in the second half of last year, while the Al Noor Hospitals Group gained more than 51 per cent over the same period, according to data from Bloomberg News.
Speaking to The National in December, Mohammad Kamal, director of equity research at Arqaam Capital, predicted that new healthcare laws would lead to a substantial rise in "insurance claims and premiums written".
A report from Ernst & Young, published last month, predicted that healthcare spending in the region would increase by 11.4 per cent over the next two years.
Daman is majority owned by the Abu Dhabi Government, which holds 80 per cent of the company, while the remainder is owned by Munich Re, a German reinsurance company.
"The opening of our first branch in Sharjah is an important step forward in our expansion plans across the nation," said Dr Michael Bitzer, Daman's chief executive.
The company said that demand for its insurance plans from the emirate had increased in recent years, making the branch opening a logical next step.
abouyamourn@thenational.ae

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

TechnologySharjah