Latest Poll – The Solution to Underinsurance?


What is the single most critical initiative you would implement to address Australia’s underinsurance dilemma?

The 2020 FSC Life Insurance Summit is affording many in the sector this week the opportunity to reflect on the myriad of issues and challenges confronting Australia’s life insurance industry.

Riskinfo’s latest poll draws on a number of conversations that are taking place during the summit this week, where the focus will be on areas such as industry sustainability, mental health and mental health claims, and the industry’s ongoing response to the Coronavirus pandemic.

We’ve often asked this question at our industry round table events and will welcome your own take on what you think is the single most important action that you would take to solve Australia’s underinsurance dilemma.

…there’s no one single solution to underinsurance in Australia

We appreciate there’s no one single solution to underinsurance in Australia. When the answer arrives, it will likely be in the form of a combination of measures. But for the time being, if you had to identify the most important step, which would it be?

The options you’ve been provided with reflect the most popular and consistent responses we’ve received from advises and other round table panellists over the last ten years since our round tables have been operating.

Let us know what you think and we’ll report back to you next week…



  1. There is no single solution to fix Under-Insurance, though 4 steps will bring this issue into a more responsible approach.

    1) Overhaul LIF.

    2) Allow Financial Planning firms to have in-house, or outsourced specialist risk advisers to just provide risk advice with an Industry aligned, specific education process that encourages more Insurance to be written, without the maze of red tape and complexity that is currently killing off the Industry.

    3) Commission to be a flat 80/20% based on premiums paid and only once the Life Companies can prove that they have made vast improvements with efficiencies that reduce the time advisers spend fixing issues and servicing clients, then a reduction in commissions can be looked at that matches the efficiency gains.

    4) Responsibility period to remain at 2 years for Adviser led closure or reduction of cover and One year responsibility for any other policy reduction or cancellation.

    These are the issues that must be implemented, or there will be no future, let alone growth, as the current maze is a no-win situation for everyone, including the Life Insurance Companies.

  2. Let’s cut through the garbage that people are ignorant and unknowing about life insurance and it’s purpose They are all ( or at least 99%) aware of the benefits and reasons to have it
    It comes down to cost and if their relatives will actually get paid if they die or they will get paid if they are TPD or worst of all what” brick bat “ that will get thrown at them if they make a claim for disability through Income protection.combine that with excessive costs ( income protection in particular ) and they are prepared to “ run the gauntlet “ We are going down the same road as the health funds and without breaks.
    The Royal Commission was all about a look into the banks behaviour and look what happened the advisers became the “scape goats” for their bad behaviour while they got of virtually unscathed The “ wicked adviser” and that “ wicked commission” When we win back the public’s support that was so badly tarnished by that one sided commission report we might see a change in product sales but with no one left to advise the public the end if advised retail insurance is coming to and end thanks to bad and misleading publicity and a floored LIFE

  3. At the time of voting, 20% “have another solution”. Of course we do – change LIF must be altered from its current format; and abolish FASEA’s ridiculous imposition that all advisers must complete a degree! The latter is an insult to all advisers who have 10, 20, 30 and 30+ years experience. Until this message gets through, the underinsurance dilemma will continue.

  4. As usual Jeremy, beautifully articulated. LIF must be abolished. FASEA
    standards must be overhauled even abolished in their current form, or at
    the very least re-worded so anyone who reads them comes to the same
    conclusion. I interpret the standards differently to my licensee, who
    interpret them differently to FASEA. The whole thing is a debacle. My
    concern is…what all the comments are communicating have been the same
    for 10 years and yet here we are saying the same thing again and again
    with no one who has the ability to enforce change is listening. Why are
    we the only industry (sorry profession) operating under presumption of
    guilt until we can prove our innocence. Meanwhile we have a Royal
    Commissioner who believes that most people have adequate insurance
    through their super fund…while we have this sort of absurd ideology at
    the top, we don’t stand a chance. good luck to you all.

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