The Selection and Entry to Life Insurance coverage (CALI) marketing campaign contains representatives from TAL, Zurich, AIA, MLC Life Insurance coverage, the AFA and FPA and has commissioned analysis from business consultants NMG Consulting that reveals regulatory disruption has restricted entry to life insurance coverage for customers.
“Significant demographic pockets of underinsurance are already emerging, with one in five younger Australians aged 25 – 35 currently considered underinsured compared to community expectations,” a press release from the marketing campaign group mentioned.
“Similarly, 20 per cent of middle-aged Australians have less life insurance than levels the level the research shows the community believes to be necessary.”
The paper highlights the impression of fee discount specifically on insurance coverage recommendation, saying that “most ordinary Australians cannot afford to pay an upfront fee for financial advice, and, if trends continue, may not be able to access a financial adviser to help them identify their life insurance needs”.
“On the current trajectory, within three years, only the wealthiest 15 per cent of Australians will be able to access life insurance with personal advice,” the group mentioned.
CALI group members mentioned they have been “calling on the government to take the research findings into account when considering future policy decisions” within the life insurance coverage sector, “to ensure the right life insurance and access to affordable financial advice is available to all Australians, now and in the future”.
AFA chief government Philip Kewin mentioned the marketing campaign was “about ensuring affordable advice for all Australians”.
“In such uncertain times, people need to ensure they have the right protection for themselves, their families and their businesses. Access to affordable professional advice is critical to ensure people have the right cover at the right time,” Mr Kewin mentioned.
AIA Australia chief government Damien Mu mentioned the outcomes of the group’s analysis revealed “how important it is for decision-makers to consider the impact of life insurance regulatory change on everyday Australians”.
“We need to ensure Australians have access to quality advice and choice to meet their protection needs,” Mr Mu mentioned.
Zurich Australia chief government of life and investments, Justin Delaney, added that the marketing campaign was an “exciting” alternative to “reset how we as an industry meet the expectations of consumers and the community in a modern context”.