By Staff writer
Statistics show claims correspond strongly with the region's leading causes of premature death, critical illness and disability
Zurich’s life business in the Middle East has released claims statistics which reveal is paid out AED 246 million ($67 million) in critical illness and life cover claims between January 2013 to December 2015, up 42.5 percent on the previous two years.
Zurich said in a statement that 98 percent of life cover claims were paid during the period, for a total of AED125 million and critical illness claims were paid out in 87 percent of cases for a total of AED121 million.
Zurich added that its data showed its claims experience corresponds strongly with the region's leading causes of premature death, critical illness and disability.
Zurich critical illness claims were made due to cancer in 49 percent of all cases and on heart diseases in 48 percent of all cases.
Leading causes of death for life insurance claims were diseases such as cancer (32 percent) and heart diseases (43 percent).
Zurich said that the average age of life insurance claimants was 51 and critical illness claimants was 47, adding that often obesity is associated with many of these claims.
A study released by Zurich last year showed that two-thirds of all UAE residents are overweight or obese which can lead to a significantly increased risk of diseases such as heart diseases and diabetes.
Another worryingly result of the claims review is the number of deaths caused by road accidents, Zurich said. Despite positive interventions to increase road safety across the Middle East, 8 percent of life cover claims are based on this cause of death.
Research by Zurich back in 2014 showed that almost two thirds of UAE residents do not have a life insurance policy that would protect their family's financial future in the event of death of the primary salary earner. The survey also found that only 20 percent of UAE residents have critical illness insurance.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Where does it state the premiums paid to Zurich Insurance? If the increase of payouts is 42% during the 2-year period what was the corresponding increase in premium revenue? It is great that 98% of claims were paid and not taking a cheap shot at Zurich
This is life insurance, unless there is a really weird thing going on, this is a really strong increase because the payments are not directly related to last year premiums but they are a weighted average of all the cohorts. You would need to understand the average contract length (at least) to put things in perspective, maybe people are getting insurance with preexisting conditions and paying premiums for a very short time, maybe this is related to the recent changes in health insurance requirements and nothing wrong here.
Or maybe there is a strong deterioration on public health, it is impossible to know from these figures but they look weird for sure