UAE - Proportion of residents with life insurance this year declines
Source: Middle East Insurance Review | Nov 2016
A survey commissioned by Friends Provident International (FPI) has revealed a significant increase in the number of UAE residents who lack protection in the form of life insurance or critical illness, compared with the insurer’s research conducted at the same time last year.
According to the latest research - conducted by YouGov on behalf of FPI – 58% of the 503 respondents do not have life insurance in place, compared with 48% who said they did not have life or critical illness insurance in last year’s survey.
The main reasons cited by respondents for not having life cover in place were “too expensive” (32%) and “not familiar with the concept of life insurance” (26%).
The survey this year also found that 21% of respondents said they have critical illness insurance in place to protect them and their families should they fall seriously ill. For those without critical illness cover, more than a third of respondents (37%) said they were “unfamiliar with the concept” and 28% said it was “too expensive”.
The research shows that women are less likely to have life insurance, with just over one third (37%) having cover in place, compared with 45% of men. Women are also less likely to have critical illness cover, with less than one in five (18%) having this type of cover as opposed to 23% of male respondents.
Mr Marcus Gent, Managing Director, Middle East and Africa at FPI, said, “It is quite disturbing that the number of respondents without life insurance cover has increased in the last year, and the number of respondents without critical illness cover is also a cause for concern. I appreciate that no one likes to consider their own mortality or to think about becoming seriously ill; however it is important to think about the potential impact on a family if the worst should happen. Protection should form a cornerstone of any robust financial planning.”
FPI, part of the Aviva group, provides savings, investment and protection solutions to customers in Asia and the UAE.