The mortality protection gap in Australia has grown from $540 billion in 2000 to $972 billion in 2010, according to Swiss Re.

While the 10-year trend has generally been upwards, last year was the first to record a decline in the gap.

The study compared a household’s financial assets, including savings, and the inforce sum insured comparing the combined result with income needed to maintain living standards.

In Australia, the study found that for every $100 of protection needed, people only had $64 of savings leaving a gap of $36.

Swiss Re says the mortality gap is increasing in Asia and was at $US41.4 trillion ($40.6 trillion) in 2010. This compared to $US15.7 trillion ($15.3 trillion) in 2000. 

The growth in the mortality gap is due to savings and life insurance not keeping up with wage growth.

The largest mortality gap in Asia is in China, where it is now $US18.7 trillion ($18.3 trillion), followed by Japan with $US8.4 trillion ($8.2 trillion) and India $US6.6 trillion ($6.4 trillion). The smallest gap is in Taiwan with $US175 million ($171.6 million).