Almost five in 10 respondents living in the UAE have indicated that life insurance has become increasingly important in the wake of COVID-19, according to a new report from Zurich International Life and research firm YouGov.
In addition, the study, based on a survey of 1,000 residents in the UAE, showed that a similar number of individuals (51%) have highlighted savings as a priority while retirement planning highlighted by 32%. These statistics point to a greater need for long-term planning among the general population.
“The unprecedented nature of COVID-19 with the rising rate of infections and the increasing death toll across the globe has altered the mind-set of individuals.
“The previous misconception of ‘it won’t happen to me’ has been set straight and people are now coming to terms with the fact that the unexpected does happen and it can happen to anyone and everyone,” said Zurich Middle East CEO Walter Jopp.
The pandemic is also changing the attitudes and preferences of how consumers want to purchase goods and services — this includes the consumption of financial services. With anxiety surrounding physical interaction with others, individuals are looking at ways to make purchases online from the safety of their homes and at a time of their choosing. When asked about purchasing life insurance online, almost half of those surveyed admitted that they were likely to buy a digital life insurance solution with this number increasing to almost 60% of higher income earners.
Survey responses highlighted trust in the insurance provider as the most important consideration when purchasing life insurance online followed by affordability and simplicity surrounding terms and conditions, documentation and processes. Those respondents who stated they were unlikely to purchase life insurance online, cited affordability as one of most significant reasons why.
It is based on an understanding of these preferences, behaviours and concerns, that Zurich Middle East launched ‘YourLife’, its first completely digital life insurance solution in the UAE. “We have been protecting our customers in the UAE for over 30 years and are proud to provide YourLife as part of our commitment to safeguard individuals and their families from the financial impact associated with passing away.
“Our fully digital solution managed in accordance with Zurich’s industry leading data commitment and local regulatory standards, provides immediate life cover of up to AED600,000 ($163,400) from only AED2 per day and can be purchased online in 10 minutes without the need for a medical,” said Mr Jopp.