ANZ Wealth has released a white paper analysing challenges facing the life insurance sector and examining ways to build a more sustainable industry.

The paper says issues of damaged reputation and loss-making products must be addressed.

“Fortunately, the solution is straightforward: clear, core-purpose products that provide genuine protection against the financial impacts of disability at an affordable price.”

If the sector stays on its current path, some products may become unsustainable, the paper warns.

“This will force up premiums, making cover unaffordable for customers and depriving them of the opportunity to protect themselves and their families.

“Even worse, the continuation of loss-making policies could threaten the financial health of the insurance providers that consumers rely on to cover them for years into the future.”

In the medium to long term, insurers must adapt to technological developments and changing customer expectations to produce more personalised products, improve customer experience and become more efficient.

“Using the many sources of customer data becoming available will revolutionise how insurance policies are underwritten, making premiums more manageable where appropriate and making policies more precise, reducing risk and drastically improving the speed and efficiency of the underwriting process,” the paper says.

To view the full report, click here.