Mandatory income-protection insurance suggested
Source: Middle East Insurance Review | Jul 2021
Governments should consider introducing mandatory provision of income protection insurance following the COVID-19 pandemic according to a new research by the University of Oxford and Zurich Insurance.
The new 181-page research report ‘Shaping a Brighter Future of Work’ based on interviews with Zurich senior leaders in 17 countries, has recommended auto-enrolment of employees into plans that offer basic income protection and participation in pension schemes.
It also provides governments, insurers and employers with advice covering financial education, reskilling, social protection, healthcare, and retirement and savings, which could help ensure employees are well-prepared for life after work.
The study covers how some types of mandatory insurance, such as coverage for disabilities and unemployment, could help protect people from the economic distress caused by events like the pandemic.
Zurich Insurance said that it expects heightened interest for income protection insurance and term life coverage following the pandemic but such interest has been slow to develop in the past and may not translate into heavy demand.
The research report said there is a need for education around the importance of preparing for any type of costly setback, which lays out some of the ways insurers and others can provide that help.
Calls for mandatory and compulsory protections are already being raised in some countries. In Spain discussions are being held regarding a UK-style model of pension auto-enrolment and the introduction of compulsory savings programmes. In the UK discussions are currently on around making employer-funded sick pay compulsory. M