Income protection on the rise among younger employees in the Middle East

A growing number of employees in their 30s and 40s across the Middle East are turning to income protection and living benefits to safeguard their financial futures, according to new data released by Zurich International Life Ltd. Middle East, part of Zurich Insurance Group.

Their recently published Corporate Customer Report 2025 reveals a striking trend: the average age of income protection claimants has dropped from 51 to just 41 over the last three years. This shift reflects broader changes in the workforce, as employees face rising health risks, increased living costs, and changing career trajectories.

The report highlights a growing emphasis on financial resilience within employee wellbeing strategies. More companies in the UAE are recognising the importance of offering income protection and critical illness coverage as part of their employee benefits packages. These protections are becoming essential for supporting workforce stability and long-term productivity.

“The decreasing claimant age for Income Protection claims highlights a critical need for employers to prioritise comprehensive employee benefits,” said Swarnaleka Shetty, Head of Distribution for Corporate Life & Pensions at Zurich International Life Ltd. Middle East. “By offering these essential benefits, employers can enhance workforce resilience, retain valuable talent, and showcase a forward-thinking commitment to their employees’ financial security in an evolving workplace landscape. This shift also reflects the growing number of expats choosing to stay longer in the UAE, influenced by incentives like golden visas and the desire for familiar benefits from their home countries.”

Increase in living benefits claims

The 2025 report shows an increasing reliance on living benefits over traditional life cover. Over the three years (from 2022 to 2024), Zurich has paid out more than USD 47 million in corporate life and disability claims across the region.

Around 1 in 5 claims were living benefit payouts, including income protection, disability, and critical illness cover. These benefits provide crucial support while employees are still alive, helping them manage recovery, lifestyle adjustments, or temporary loss of income.

Such support has proven vital in reducing financial stress, improving morale, and contributing to stronger employee retention. Employers are responding by evolving their wellbeing strategies beyond conventional perks, such as gym memberships or flexible working hours. Today’s workforce is seeking benefits that offer real security during life’s most challenging moments.

This shift isn’t limited to large corporations. The report notes that smaller businesses are increasingly stepping up their efforts. In 2025, 32% of Zurich’s newly added group schemes came from companies with between 5 and 50 employees.

These small and medium enterprises (SMEs) view financial protection benefits as an investment in their people and a practical way to build trust and long-term commitment. This trend supports the UAE’s broader goal of nurturing a resilient and innovation-driven SME sector.

Financial resilience takes centre stage

With younger generations leading the way, financial protection is emerging as a cornerstone of modern workplace wellbeing. Companies across the UAE and GCC now have an opportunity to enhance employee engagement and future-proof their organisations by rethinking benefit strategies.

“Workplace benefits are evolving, and so are employee expectations,” added Shetty. “When businesses prioritise protection and resilience, they not only safeguard their people but also build a stronger, more sustainable culture. At Zurich, we are committed to helping employers across the Middle East deliver world-class benefits that support their workforce and enhance organisational resilience. Employees are the heartbeat of every business, and their well-being deserves to be protected.”

As the region’s workforce grows younger and more financially conscious, the role of living benefits will continue to grow in importance, both for individuals and the companies they help to build.