Too early to gauge impact of pandemic on life insurance claims, says Zurich CEO
With the ongoing COVID-19 pandemic, getting a life insurance plan is a priority for Emirati nationals and Indian expatriates living in the UAE, according to a recent survey.
As the world battles increasing number of coronavirus cases, 51 percent of the Indian expatriates living in the UAE, 47 percent of the Emirati nationals and 37 percent of the western expats say that life insurance is more important than before, revealed a survey conducted by YouGov on behalf of Zurich International Life Limited in the Middle East.
Overall, 46 percent of the UAE residents favour life insurance in wake of COVID-19, said the survey of 1,000 respondents in the country.
While customers continue to prioritise life insurance, it is still too early to estimate the impact of coronavirus on life insurance claims, said Walter Jopp, CEO of Zurich International Life Limited in the Middle East.
Citing Zurich’s more than 30 years in the region, said: “We have seen the impact of multiple economic cycles including the financial crisis and the dot com crash. Our experience with these events suggests customers will continue to prioritise life insurance, ensuring that they and their families are protected from unforeseen circumstances.”
As expected during these unprecedented times, Zurich has observed an increase in delays relating to premiums payments from customers that we believe is due to loss of employment or salary reductions, he told Zawya, adding, “While our policies have some inherent flexibility for such scenarios, they were further enhanced in response to COVID-19 and in consideration of financial challenges experienced by individuals in the region.”
CONFIDENT ON UAE
The Zurich CEO seemed confident of the UAE’s ability to mitigate the risks owing to COVID-19. “The robust and proactive approach of the UAE government gives confidence to those who live and work here. The strength of the local healthcare system, widespread testing for early detection and recently announced plans for a stronger community post COVID-19 are just some of the strengths of the local system,” he wrote for the World Economic Forum’s COVID-19 Risks Outlook report.
About the new insurance needs in the post-pandemic market, he said insurance companies and customers will be strongly linked digitally.
“We have introduced YourLife based on our understanding of customer needs. It is our first completely digital life insurance solution in the UAE,” he said.
Customers' perception of risk will change, and the protection of their own health will become even more important, he said, adding cost awareness is also likely to grow.
“However, we are still in the middle of the crisis; it is too early to draw any final conclusions. One thing is certain: our lives will look different to how they were before COVID-19; how exactly, we will see,” said Jopp.
Even the Zurich-YouGov survey indicated the change in customer attitudes. Life insurance now ranks over four times higher than travel insurance and 3.5 times more than property insurance, home finance and car loans, it said.
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