Alarmingly low levels of life insurance among Australians will remain unless the industry gets its act together to raise the level of risk awareness, according to Zurich Financial Services Australia.

The insurer says the fact that most people believe something bad won’t happen to them is the main reason for underinsurance.

In a national survey revealed by Zurich at its recent Life Risk Symposium roadshow, more than 500 financial advisers and support staff agreed with that view.

Another 22% of advisers and para-planners thought underinsurance could be blamed on clients not knowing about personal insurance, and 19% said it was because clients think it is too expensive.

Zurich Strategic Marketing Manager Marc Fabris says the main message the industry should take on is that behind every statistic there is a real person.

“A significant challenge our industry faces is to appreciate the reality of life risks and the consequences of these risks so that action is taken – by advisers in raising the issues and clients in heeding their advice,” he said.

The gap between the level of cover required and what is purchased is widening – 73% of respondents say a typical family needs $1 million of cover, yet the average Zurich cover is about $400,000.