Clients unclear about how much insurance cover needed
By Kirsten Hastings, 28 Jun 16
Perception and reality differ significantly when it comes to how families around the world think they will be impacted if the main earner suffers from critical illness, disability or worse without appropriate cover, says Zurich.
Australia: Relative to their global peers, Australians demonstrated limited appetite for income protection products, partly due to expectations of government support and the belief that they were unlikely to need it.
Brazil: The country has been bolstering social protections, including income protection, in recent years. However, an economic contraction and recent political turmoil is raising questions about the sustainability of this approach, leaving millions at risk.
Germany: Survey results in Germany suggest that the public has a very strong expectation that the state will provide support in the event of significant income loss, with few respondents making provisions against disability, even as the government is facing tough choices to cut spending.
Hong Kong: It has well-established social protections against income loss, but respondents were very aware of the limitations of these systems and the need to insure their own risks.
Italy: Italian families have traditionally relied upon the state to provide protection against loss income due to illness, disability or premature death. The data suggests, however, that this could be changing.
Malaysia: Malaysians enjoy a relatively high level of income protection, but are also very aware of the need to protect themselves and their families.
Mexico: Limited social protection and uncertain working conditions mean that Mexicans are more aware of the need for income protection than people in other markets.
Spain: One of the countries that was hardest hit by the financial crisis in 2008, it putt enormous strain on Spain’s social safety nets. Despite this, survey respondents relied heavily on the state to provide income protection, raising the prospect of significant funding gaps in future.
Switzerland: The Swiss feel they are poorly informed about the financial consequences of disability and premature death. Most have limited savings and would welcome a benefit package rather than higher wages.
United Kingdom: Faced with challenging economic growth and a substantial debt burden, the UK government has been cutting welfare provisions, which has contributed to a widening protection gap. The survey shows, however, that private individual have yet to recognise the risks.
United States: The survey data shows a further decline in the penetration of income protection insurance products in the US, despite rising healthcare costs and dwindling social safety nets, and a strong preference for private over state solutions.
Tags: Zurich
