Zurich Insurance Middle East Claims

Statistics 2018
BY MONEY MATA - AKA - DAMODHAR MATA04, MAY 2018

Zurich International Life has released its latest claim statistics

for the periods January 2015 - December 2017.

The highlights of the report are as follows;

More claims under age 60

It is shocking to read that more than 80% of the Claimants of

Critical Illness or Death Benefits were still in their prime
working years, ie under age 60.
 82% of Death claims and 89% critical illness claims due to
Cardio Vascular Disease were of clients under age 60
 85% of Death claims and 93% critical illness claims due to
Cancer were of clients below age 60

Between age 50 - 60 the disposable income of a person is usually

the highest, as they would have moved high up in their career /
Business. Loss of income due to death or critical illness during
this crucial period can upset the finances of their family.

In my many conversations with clients during the financial

planning process, we usually assume that the probability of death
or critical illness is higher after age 60.

We always believe that people are more prone to death or critical

illness after age 60, but the latest statistics are suggesting that
these could happen much early in our lives.

It goes without saying that we have to be financially ready by

availing adequate life and critical illness as early as possible.

Key Causes of Claims among Male & Female Lives Insured

 71% of claims by female lives insured were due to Breast or
Cervical Cancers
 52% of claims by male lives insured were due to
Cardiovascular Diseases.

Given the sedentary lifestyle and high fat/calorie food we

consume, cardiovascular disease and cancer remain to two most
potent reasons for critical illness and death claims in the middle
east.

Regular exercise and a healthy diet can help us prevent such

disease by large.

Governments in UAE are taking many steps in creating awareness

among residents on the benefits of healthy eating and regular
exercise.
The Dubai Fitness Challenge held last year was well received by
many participating in the challenge. Hopefully, such initiatives
would help us reduce the occurrence of cancer and cardiovascular
disease in UAE.

Age trends of claimants

 The youngest life cover claimant was 27 years old
 The youngest critical illness benefit claimant was 28 years old
 Youngest child critical illness claimant - 3 years old
 The average age of life cover claimants - 50 years
 The average age of Critical illness benefit claimant - 48 years

Inadequate Cover Amounts

While more than 80% of claimants were less than age 60, the
average claim amount was a less than $200,000.

The average salary of expats in UAE for the year 2017

was $138,177 (Dh507,110) per annum, but the average life
insurance does not even cover 2 years of income.

In spite of rising income levels and inflation, residents are still

largely under insured. With a family to support and children in
school or college, $200,000 is not likely to last long.

The monthly premium on $500,000 life and critical illness

insurance for a non-smoker is as follows;

Term Monthly Premium Annual % over coveramount

Age
25 30 Years $127.81 0.306%
30 30 years $182.71 0.438%
35 30 years $258.12 0.619%
40 30 years $378.88 0.909%
45 25 years $458.83 1.100%
50 20 Years $634.96 1.523%

While the lowest car insurance premium is around 2.00%, the

average life insurance costs way less than that.

People are happy to insure their cars and do a lot of research on

getting the best car insurance with benefits like hire car and
agency repair, but when it comes life insurance people try to cut
costs by reducing the cover amounts...

Promise Delivered

Total Claims paid between Jan 2015 - Dec 2017 = USD 80 Million
Largest Life Cover Claim Paid - USD 10.08 Million

Largest Critical Illness Cover Paid - USD 1.25 Million

Percentage of Claims Paid

Life Cover Claims - 94%

Critical Illness Claims Paid - 93%

Summary & Expert Advice

Cost of living and other expenses around the world are constantly
increasing, but people are not reviewing their protection needs
regularly.

It is recommended that you must at least review your protection

adequacy every 2 years.

Also when you are looking to buy insurance, please remember you
easily get 10 - 15 times of your annual income as life insurance
and 5 - 10 your annual income as critical illness cover. It makes a
lot of sense to buy as much as you can get and afford.
The following are the 3 broad classifications of life insurance in
UAE;

1. Term Insurance - The most affordable life insurance, providing

big cover amounts on a shoestring budget
2. Endowment Plans - A fine blend of savings and protection
3. Whole of Life Plans - Protection plans with a lot of flexibilities,
addressing long-term protection needs.
Free Consultation

To know more about the various insurance plans in UAE and to

help you chose an ideal protection plan, you can arrange a free
consultation with me.