INGA survey finds advisers seek government support for life insurance

A majority of financial advisers polled at recent ING Australia adviser roadshows believe government support is required to help boost the life insurance coverage levels of the average Australian.

When asked, “the solution to underinsurance should be led by …”, a majority of the 1200 respondents from across Australia considered government should take a lead role, especially through education and public awareness programs. 

While advisers also included themselves as part of the solution, a majority echoed similar views as outlined in the recent IFSA Life Insurance Headland Statement, “Securing Australians’ Financial Wellbeing”*, regarding the need for government to do more to promote the importance of considering appropriate life insurance.

The survey was conducted during the recent OneCare Express product launch to financial advisers.  Launch sessions were held in major cities across Australia.  The survey asked a series of questions related to selling risk insurance and other financial adviser activities. More than 1200 advisers participated in the survey with results posted in real time during each launch session.

Other survey results:

• Respondents were evenly split on whether the financial adviser of the future would be a generalist or specialist.  Although more than 65% of Adelaide respondents believed the future adviser would be a generalist and nearly 60% from Brisbane thought specialisation was the way of the future.
• An overwhelming proportion of advisers (more than 62%) said that future risk advisers would come via career development.  The next likely source was university degrees specialising in financial planning (more than 16%).
• And when asked, “one way to make writing life insurance easier …” a clear majority said by improving public awareness of the need for life insurance.

Helen Troup, INGA Executive Director Life Risk, said that the survey results reflect a clear industry sentiment that more needs to be done to adequately protect the wealth of average Australians.

“We recognise that a significant number of Australians are underinsured and that a wide ranging program involving advisers, the industry, and government is needed to raise awareness of this issue.

“Australians do not give a second thought to car insurance, whereas only 30% have adequate life or salary continuance insurance.

“The critical underinsurance of Australians is both a huge social issue and a major professional challenge: the life insurance industry must convince all financial advisers of the value of risk protection, and give them the requisite skills to effectively communicate its value to clients,” said Ms Troup.