The second wave of COVID-19 is driving demand for life insurance products among Australian high net worth investors, according to GlobalData’s 2020 Global Wealth Managers Survey.

The survey finds 88% of Australian wealth managers have reported higher demand for life insurance products as a result of the pandemic – the most of 19 countries surveyed.

Roughly half of the local wealth managers contacted expect demand to continue to rise over the coming year, while “virtually none” expect demand to fall.

GlobalData research in early August found 83% of Australians were ‘quite concerned’ or ‘extremely concerned’ about the outbreak of COVID-19, while another 12% were ‘slightly concerned.’

The proportion of Australians believing the COVID-19 situation will get “a bit” or “a lot” worse over the next month jumped to 62%, up sharply from 29% at the beginning of May.

“This negative sentiment will continue to support the demand for life insurance products,” Sydney-based GlobalData analyst Heike van den Hoevel says.

However, the survey also finds that 96% of wealth managers agree customers have lost confidence in the life insurance industry as a result of the pandemic, and GlobalData says lack of trust continues to have a significant effect.

“This is a worrying statistic,” Ms van den Hoevel says. “The reputation of insurers has taken a battering amidst COVID-19.

“The crisis has been a double-edged sword – COVID-19 is driving demand but has also had a negative impact on the insurance providers’ image.”

She says high net worth investors will be more likely to buy insurance products via a third party with whom they already have a well-established relationship.