Life insurance has become increasingly important to UAE residents following the impact of the coronavirus pandemic, with 46 percent noting it as a top financial priority, according to a new report from insurance provider Zurich and research firm YouGov.
The COVID-19 pandemic is predicted to cause the biggest global recession in nearly a century, with businesses struggling as consumers stay at home and jobs evaporating. The UAE has implemented several measures to shield its economy from the worst effects of the downturn, including a variety of giant economic stimulus packages.
In this context, consumers have begun to worry more about themselves, Walter Jopp, CEO of Zurich in the Middle East said.
“The unprecedented nature of COVID-19 with the rising rate of infections and the increasing death toll across the globe has altered the mindset of individuals,” Jopp said in a statement.
The pandemic has also significantly altered consumer behavior, with ecommerce emerging as a much more popular solution to buy products.
“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,” he added.
The survey found that almost half were likely to buy a digital life insurance solution over in person, with this figure rising to 60 percent among high income earners.
Trust in the insurance provider also emerged as the most important consideration consumers take when looking to purchase life insurance online, followed by affordability and simplicity of terms and conditions.
Among those that said they were unlikely to buy insurance online, affordability was cited as the most significant reason why.
The UAE has reported 34,557 cases of coronavirus, with 264 fatalities. The total number of recoveries so far stands at 17,932.