Income Protection Gaps: Challenge and Opportunity

Zurich asked more than 11,000 people on four continents how long their savings would last if they couldn’t work due to an injury or sickness. One in five said less than a month. Even for the six out of 10 who thought their savings would last a little longer, the risks are substantial.

Educating people about the risks, and solutions available to address the so-called ‘income protection gap’ — the shortfall gap in earnings if someone can’t work due to disability — is a crucial first step. It’s also important to educate people about how to protect themselves against such risk.

Only one out of three people surveyed already had some form of life or illness cover. Typically, people over-estimated the cost; coverage may available for much less than people think.

Disability coverage can benefit not only employees, but also employers by providing a good ‘loyalty incentive.’ Our survey showed that six out of 10 hires would rather have a good benefits package than an increase in their base salary.

As a global insurer, Zurich has a key role to play in mitigating risk. That’s why we’ll continue to work to raise awareness, and work with individuals, public and private sectors, governments and regulators, to help narrow the income protection gap.

Download the full report here and additional materials:

Report: Income protection gaps: challenge and opportunity (3.32 MB/PDF) 

Income protection gaps: executive summary (233.23 KB/PDF)