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IFSA heads underinsurance battle

The Investment and Financial Services Association (IFSA) has announced a campaign to tackle Australia’s life underinsurance epidemic.

Twenty insurance company members will fund a consumer brand to be launched later this year. The brand will form the centrepiece of a campaign designed to raise awareness of the problem of life underinsurance.

IFSA CEO Richard Gilbert says life insurance is not about assessing a person’s likelihood of dying but about protecting assets, income and managing expenses.

“It’s remarkable that 84% of people insure their car while just 31% insure their most important asset – their ability to earn an income,” he said.

“The campaign will encourage people to see personal insurance as a part of everyday life… and empower people to gain a sense of clarity, control and relief about their financial security.”

He says underinsurance is a key challenge for the financial services industry.