Financial Services Minister Bill Shorten has told insurers they need to “get with the times” and offer income protection and workers’ compensation insurance to older workers.

He told last week’s Regulatory Update conference in Sydney that the Federal Government sees insurance as a key factor in helping older Australians stay in the workforce.

“At present it is very difficult to purchase income protection and workers’ compensation above certain arbitrary ages,” he told the Insurance Council of Australia-hosted conference.

Speaking by video link, Mr Shorten said the Government understands premiums will be higher for older workers, but that as people live longer and healthier lives some of the age limits on cover need to be raised.

With the retirement age moving up to 67, “insurance companies should keep up with the times” and offer insurance to that level or beyond.

He said this also applies to travel insurance.

The next Insurance Reform Advisory Group will consider the insurance needs of older Australians.

Mr Shorten told the industry to expect another big year of regulatory change and a wider agenda than the natural disasters that were last year’s focus.

He identified two key objectives: increasing the range of insurable risks and improving the transparency and availability of insurance.

Referring to the Natural Disaster Insurance Review being considered by the Government at present, he said it has provided three guiding principles:

• Government intervention in the insurance market is only justifiable when there is clear market failure in providing appropriate cover and affordable premiums;
• There should be appropriate mitigation of risk by individuals and communities; and
• Individuals and businesses should be encouraged to insure themselves where practicable.