Nearly 3 million Australians don’t have access to basic financial services including general insurance, according to a new study.

The survey commissioned by the National Australia Bank and the Centre for Social Impact finds that 17.2% of adults have no or one financial services product.

A further 42% have access to two products, while 40.8% have a bank account, credit card and insurance.

The study finds 18.9% of adults are excluded from general insurance, which it says costs an average $898 for basic motor vehicle and basic contents insurance.

Lead researcher Chris Connolly told insuranceNEWS.com.au that although Australia has high levels of insurance, its cost and complexity exclude some groups.

He says only 69.5% of people born in non-English-speaking countries have general insurance. This compares with 81.1% of the adult population who have general insurance.

In some cases, recent migrants are excluded from products requiring 6-12 months residency, and complexity is also an issue for migrants.

“If they can’t understand the product, they tend not to trust it, and they won’t acquire it at the same rate as other groups,” Mr Connolly said.

He says younger people are often priced out of insurance, particularly for cars.

“They’ll face incredibly high premiums being a driver under 25,” he said.

The study is being conducted over several years. Mr Connolly says the cost of financial services generally increases in line with inflation, but insurance rose at twice the inflation rate in the year the study has covered so far.

“We are looking at exploring group insurance options for groups of low income, vulnerable, newly arrived consumers,” he said.

Mr Connolly says one option would be to offer groups of tenants an insurance product through their tenancy, instead of requiring each individual to apply. He compares it with group insurance in super.

“We’re also looking at starter packs of financial services, with a simple bank account, basic insurance and a basic credit card, aimed at young people,” he said.

“It’s not just making them more affordable, but getting people into mainstream services.”