High-net-worth Australian investors panicked by the spread of Covid-19 are buying life insurance. However, trust in insurance providers remains low, says data and analytics company GlobalData.
The company’s 2020 Global Wealth Managers Survey shows the pandemic is driving Australian demand for life insurance products with 88 percent of wealth managers reporting increased demand for life products – the highest proportion among the 19 countries surveyed by the firm.
Heike van den Hoevel, Senior Wealth Management Analyst at GlobalData, says: “In the face of growing concerns surrounding infections, Australian investors are looking for ways to care for their families.
“Roughly half of the wealth managers GlobalData surveyed expect demand to continue to rise over the coming year, while virtually none expected demand to fall.
“However, the lack of trust in insurance providers continues to have a significant effect on the provider selection. The crisis has been a double-edged-sword – Covid-19 is driving demand but has also had a negative impact on the insurance providers’ image.”
According to GlobalData’s proprietary data, 96 percent of wealth managers agree that customers have lost confidence in the life insurance industry as a result of the Covid-19 pandemic.
