The study was carried out in collaboration with the Smith School of Enterprise and the Environment at the University of Oxford and looked at income gaps both regionally and globally.
One of the main questions asked to consumers in the study was how long their savings would last if they lost the ability to work.
No backup plan
In the UAE, 75% of respondents had no provision in place to protect against income loss through illness, incapacity or premature death.
Of those that did have provisions, 72% received this coverage from their employer.
Globally, six out of 10 respondents said that their savings would last no more than six months and one in five said that their savings would last less than one month.
Risky business
In the UAE, there is no state provision for expats to support them if they suffer from a loss of income as a result of illness, disability or premature death.
Zurich says this is concerning as more than a quarter of the global workforce becomes unable to work at some point.
Reducing the income protection gap can save families from financial ruin, create advantages for employers and support governments in implementing regulation, Zurich said.
Jason Waldron, SME segment specialist at the insurer, said: “The gap only widens as savings are used on ongoing treatment, relocation costs, modifying the family home and having to pay the rent or mortgage.
“Income protection is vital, as your finances remain ‘abled’, at a time when you are not,” he said.
