The life insurance industry has a vital role to play in helping address some of the nation’s biggest economic and health challenges.
That was the key message from Acenda‘s CEO Kent Griffin during CALI’s inaugural conference in Sydney last week
He told attendees there has never had a better opportunity to work together to address these challenges and “…embrace the opportunities in front of us”.
He wants to build a new vision for Australia’s life insurance industry.
“Australia needs us more than ever,” he said. “A strong life insurance sector can play a vital role in Australia’s safety net and address the nation’s twin policy challenges of an ageing population and soaring healthcare costs.”
Griffin said the life insurance industry was operating in a landscape undergoing significant change because of regulatory changes, changing demographics and economic uncertainty.
He said access to affordable, quality advice was critical in helping Australians manage their financial security.
“We know there is a large unmet need for advice and guidance on life insurance,” he said.
“CALI’s latest sentiment tracker shows 33 per cent of working Australians sought or considered financial advice in the past three months, but only seven per cent actually received it.
Each year around 85,000 Australians receive more than $11 billion from life insurance claims…
“Life insurance had been a critical part of Australia’s safety net since the gold rush and provided Australians with peace of mind during life’s biggest challenges and reduced the reliance on social welfare and disability schemes.
“Each year around 85,000 Australians receive more than $11 billion from life insurance claims,” he said.
He called for solutions that will not only support access to life insurance for more Australians but make it more affordable and appropriate for their needs.
“We must continue to work together as an industry to embrace a comprehensive agenda of reform,” he said.
Reforms
He said the Government’s latest tranche of financial advice reforms were a positive step but more can be done.
“The Government has also committed to developing the remaining pieces to modernise the best interest duty and create a new class of adviser and that these combined with the draft legislation released will be introduced to Parliament as a single package,” he said.
“With this commitment from Government we are making progress.”
…the life insurance industry must continue to evolve…
Griffin also said the sector needs to do more to build trust with consumers.
“To remain relevant and trusted, the life insurance industry must continue to evolve.” he said.
“This means improving product simplicity and transparency, ensuring advice and interactions are ethical and customer-centric, and using data and technology to enhance the customer experience.
“Affordable and accessible life insurance not only reduces the cost of public services but it will empower millions more Australians to make choices and take risks with confidence.
“By working together as an industry we can create an environment that fosters growth, stability and financial security for generations to come.”
Click here to read the full speech.
