Australians not taking out life insurance despite financial worries
One in three Australians think they will suffer from serious financial problems as a result of the financial crisis, more than doubling in the last two years, but only 7 per cent of have taken out additional life insurance cover since the end of 2007, according to an AXA Protection Report. Only 16 per cent of Australians were worried about suffering from financial problems at the end of 2007.
According to the survey, 13 per cent of respondents were worried about their level of insurance but have not done anything about it, while 45 per cent of Australians think they do not need any additional insurance.
The number of Australians worried about their job security has doubled, with 37 per cent of those surveyed concerned about losing their jobs, compared to 15 per cent two years ago.
Michael Rodgers, general manager of financial protection at AXA, said it was encouraging to see the shift in attitudes towards insurance, but there was a long way to go.
“The results of the survey are another reminder that it’s now more important than ever to sit down and review your personal financial situation,” he said.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
