Forty-eight per cent of UAE residents currently lack life or critical illness insurance cover, which leaves them and their families without protection in the event of their death or serious illness, according to research by Friends Provident International.
Of those surveyed, 40% do not have life or critical illness cover and cited cost as the major impediment, saying such plans are too expensive. A further 20% said they do not have cover because it is not required and the remainder said they were unfamiliar with the concept or had other reasons.
The concept of such insurance is well understood by those who did purchase them, with 80% of respondents saying they did so to protect their family’s future if they were to fall seriously ill or die. Only 14% bought insurance as cover for a loan or mortgage.
Mr Marcus Gent, Managing Director, Middle East and Africa at FPI, said: “Most expats working in the UAE only have life and/ or critical illness cover as part of their employee benefits package, which means they could be left unprotected if they leave their current employer.”
Another statistic shows that almost half of Asian expats (48%) are likely to choose an insurance provider based on advice received from their friends and family compared to their Western counterparts, who are more likely to be influenced by professional advice, with 20% of them saying they sought adviser recommendation.
Asian expats also cited price (33%) and brand (25%) as more significant factors than their Western expats (17% and 22% respectively) when considering protection plans.
More respondents currently have health insurance than life insurance and critical illness cover. However, this could be set for a change.
Dubai’s government recently mandated that responsibility for health insurance cover rests with employers and it is for them to arrange cover for their employees. This could mean that money previously used for health insurance plans could now be redirected towards other insurance plans.
The survey, conducted between 27 May and 4 June 2015, polled 500 UAE respondents.