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Life sector urged to address scepticism

The life insurance industry needs to work harder to overcome consumer scepticism, according to ING Life Risk.

Its latest survey of Australians’ attitudes to life insurance shows the companies are often seen as the “bad guys” and most people – even those with life insurance – do not trust them to pay claims.

Of all insurance types, 92% of Australians believe car insurance is a “must have” and 88% believe home and contents insurance is a “must have”, but only 37% think life insurance is essential.

More than 40% of people believe life insurance is too complicated and hard to understand – 38% of those who hold life insurance also believe this to be the case.

The survey also found optimism is the key to Australia being the most underinsured of any developed country.

Head of Products, Marketing and Reinsurance Gerard Kerr says most people in the research consider life insurance a “nice to have”.

“But it should be considered a ‘must have’, especially during volatile economic times,” he said. “We need to convince people that life insurance is as essential as car insurance.”