Heart Attacks, Strokes And Cancer Drive Majority Of Life Insurance Claims In The Region, Zurich Report Finds
Zurich International Life, a division of Zurich Insurance Group, has recently published their Customer Claims Paid Report 2024, revealing that they have paid out a total of US$210 million in claims for individual and group life policies. The report highlights the main causes of life and critical illness claims and shows an increase in individual claims compared to the previous year.
This year, individual claims reached US$170 million, compared to US$160 million last year, prompting a closer look at individual lifestyle choices. The rise in claims for life and critical illness cover is mainly attributed to heart disease and cancer, which alone accounted for 60% of life claims.
The report is based on claims made between 2021 and 2023 against Zurich's retail and group life policies. It reveals a significant shift in the distribution of insurance claims, with living benefits claims surpassing life insurance claims for the first time. Living benefits claims accounted for 56% of total claims, a 6% increase compared to the previous year.
Deepak Gaur, Head of Claims & Corporate Operations at Zurich, stressed the importance of individuals assessing their lifestyle choices and understanding the associated risks. He emphasized the need for transparency in communication with insurance advisers to make informed decisions about financial planning and ensure the best protection for themselves and their families.
The report highlights the significance of living benefits, which provide financial security for loved ones in the event that an individual is unable to work due to illness or injury. Heart attacks, strokes, and cancer continue to be major contributors to critical illness claims, making up a staggering 92% of claims. These health conditions also accounted for 60% of overall life insurance claims, underscoring the importance of comprehensive coverage.
The report also sheds light on the differences in claim patterns between men and women, emphasizing the need for tailored insurance solutions. While it is commonly believed that cancer only affects women, the report shows that men also face substantial cancer risks. Prostate and stomach cancer are among the leading causes of critical illness claims for men. Women accounted for 44% of death claims and 80% of critical illness claims over the past three years, primarily due to cancer. Claims for heart attacks and strokes have doubled for women in just one year, highlighting the need to assess potential health risks based on factors such as lifestyle choices, age, and habits.
The report highlights the inadequacy of a one-size-fits-all approach to life insurance and critical illness cover, emphasizing the importance of understanding diverse demographics. The average age of life cover claimants has decreased to 53, and the age range of claimants has widened from 27 to 80.
It is crucial to seek guidance from a financial adviser to understand individual situations and needs, taking into account factors such as age, health status, and dependents. With personalized knowledge, Zurich provides coverage plans that align precisely with their financial and life goals.
The report underlines the importance of tailored solutions that address personal situations and health conditions, providing comprehensive coverage at every stage of life.
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