Job loss is greatest fear for a third of low-income migrant workers

More than a third of lower-income migrant workers in the UAE say their main worry is losing their job and being unable to support their families back in their home country.

The survey, which was funded by the UN and commissioned by Democrance, an insurance technology start-up that aims to make insurance affordable to all, found stagnant salaries and health problems were also common concerns.

Almost half of lower-income migrant workers surveyed regard life insurance as important, yet 79 per cent do not have it.

Health insurance for workers is mandatory in Dubai and Abu Dhabi but is often basic and does not include life insurance. The survey found that many workers are keen to acquire this type of cover.

The study, Lifestyle and Attitude of Workers within the Low-income Group in the UAE, looked at 762 workers who earn less than Dh4,000 a month and remit money at least once every two months.

Forty-nine per cent of these workers were Indian and 51 per cent Filipino. Eighty-eight per cent of them remit about Dh1,000 a month.

When looking at remittance companies, 78 per cent of respondents say rates, accessibility and rewards are the most important issues, with insurance an interesting incentive; 71 per cent like the idea of receiving insurance as a work perk.

Michele Grosso is co-founder of Democrance, which deals with insurance targeted at those on lower incomes.

“Microinsurance is a vital tool to help lift entire populations out of poverty,” he said. “Yet barriers to access often seem insurmountable for low-income migrant workers, many of whom are the sole breadwinners of their households.

“Financial inclusion is not just about affordability but also about having access to the lower-income market and understanding its needs. This is where a collaboration between insurers and remittance houses can achieve wider reach of the uninsured.”

Findings from the study will be incorporated into a project led by Democrance, which is part of a collaboration with the International Fund for Agricultural Development, a UN agency, and ADA, an inclusive finance non-government organisation in Luxembourg.

The project aims to build relationships between remittance houses and insurers.

Almost half of lowerincome migrant workers regard life insurance as important yet 79 per cent do not have it