Insurance for people on low incomes must be better targeted to their needs, according to a report released today by community group Good Shepherd Microfinance.

Payments should be allowed fortnightly and through Centrepay, so consumers can synchronise premiums with their income, which is “essential for increasing access and uptake of motor vehicle insurance”.

Low-income earners are least able to absorb losses or replace assets, the report says. It calls for product innovation to increase access and affordability of home contents and vehicle cover.

Products should be simple and disclosure statements should go beyond basic requirements, to be clear, concise and effective.

Good Shepherd wants to work with insurers and other groups to increase access to cover. It says products should be developed in consultation to meet the target market’s needs.