Insurance gap widens for vulnerable Aussies
A new report from MetLife Australia has found a gap in insurance coverage among vulnerable Australians, including young females and those receiving disability payments, leaving them susceptible to financial insecurity.
The 2022 Value of Life Insurance report showed how changes to legislation that ceased default insurance cover for younger superannuation fund members and those with lower balances or inactive accounts may have expanded the insurance gap for young women and people living with a disability, as they are the most likely to statistically fall into these categories.
This comes as data from the Household, Income and Labour Dynamics in Australia (HILDA) survey collated in 2016 found only 48 per cent of women understand at least three of five basic financial literacy concepts.
The report also stressed the important role of super funds to engage their members through digital solutions to increase awareness and education, by developing innovative new products that adapt to customers’ changing lifestyles and needs, by connecting with members earlier to create meaningful outcomes and leveraging the power of advice and technology for better member experiences.
“Our industry is reaching an important juncture. Increasing household financial pressures and cost of advice will likely see many Australians risk life without insurance, exacerbating Australia’s underinsurance problem,” Wendy Tse, Chief of Staff, Strategy and External Affairs at MetLife Australia said.
“The lack of financial literacy is a contributor to this, as people fail to see the value of life insurance. We’ve shown that financial wellness and general wellbeing are inextricably linked.
“Action is needed to ensure Australians, especially the vulnerable, are able to weather the future economic pressures and make informed decisions on the protection of their lives. Insurance is about preserving a way of life, not only a means to protecting against an adverse event.
“That’s why MetLife is finding ways to drive engagement with life insurance in super through initiatives such as the UNSW Sandbox program, which focused on finding innovative solutions to engage people across different generations, as well as reinforcing positive actions towards a life well lived with 360Health. These initiatives seek to support our partners and customers to improve financial literacy, while using technology to deliver new solutions.”
The government and life insurance companies have driven this increase in the gap and it will only get worse. Very few people who are healthy wake up one morning and go “I really want to get my personal insurances in order”.
I’m pretty sure if I applied for a Metlife policy on behalf of a client recieving disability payments, it would be declined instantly.
Seems like MetLife has recruited some marketing staff who are experts in identity politics and virtue signalling, but know absolutely nothing about their employer’s business.