Fully Underwritten – What it Means and Why it Matters

More than 60% of Australians now hold some form of life insurance, a noticeable rise from 55% per year, according to the NobleOak 2025 Life Insurance Pulse Report¹ report that we conducted with over 1,000 Australians earlier this year.

This is a promising shift signalling more people are proactively safeguarding their financial futures. Yet, there remains a disconnect between the value Australians place on life insurance and their understanding of the products they hold – particularly around what “fully underwritten” cover means.

As an industry, we need to ask: What are we doing to ensure Australians not only take out life insurance, but truly comprehend the differences between the products on offer?

What does ‘fully underwritten’ mean?

Insurance is a product that exists for some of life’s most vulnerable moments. It is designed to provide some certainty during uncertainty. But that only works if the customer fully understands what they are buying and how it functions, and this is particularly true at claim time.

Unlike policies that require minimal upfront disclosure, fully underwritten policies involve a more comprehensive assessment as the policy is established, including a variety of medical questions and some circumstances, a medical exam.

The result is often fewer surprises later during a claim and greater certainty when it matters most. We have always believed that fully underwritten cover offers the highest level of protection and peace of mind – knowing exactly what you’re covered for upfront, with no ambiguity if a claim needs to be made.

This is one of the reasons NobleOak was able to accept 100% of life cover claims against the industry average of 91.8% in 2024.²

When Australians aren’t aware of these differences, they may unknowingly purchase a policy that could let them down. That’s a risk no one should take when it comes to protecting their family’s future.

The sentiment of feeling secure with household finances is rising among Australians across the country…

Terminology such as “fully underwritten” can sound technical, even intimidating to some. But clear, transparent language must become the standard in our industry.

Australians deserve to know not just what they are covered for, but also how that cover was assessed, what exclusions might apply, and how that could affect their ability to claim. By demystifying these terms, we don’t just build better-informed customers – we build trust.

Life insurance should be more than a policy

The sentiment of feeling secure with household finances is rising among Australians across the country. Our study also showed more than three in four (76%) Australians now feel in control of their personal finances and ability to cover an unexpected expense.

As financial literacy and confidence grow, many are taking a more strategic approach to their long-term wellbeing – with life insurance increasingly seen not just as a necessity, but as a key pillar of financial planning.

But this momentum will only continue if the life insurance sector steps up its role as an educator as well as a provider. That means simplifying language, providing clearer comparisons, and advocating for fully underwritten policies that offer superior claim certainty. We should also be looking more holistically at helping our customers improve their overall financial literacy, which is why at NobleOak we recently launched a product called Wealth Maximiser.

At NobleOak we are determined to do our part to do the right thing for our customers and the industry more widely by only offering fully underwritten life insurance products and tools to improve financial literacy, not to mention explaining clearly and concisely to customers the benefits of these products.

We must meet Australians where they are, speak their language, and empower them with knowledge.

1: Independent research conducted nationally by The Market Intelligence Co in January 2025 with over 1,000 Australians aged between 30 and 60.

2: As reported by MoneySmart.giv.au sourced from ASIC from 1 Jan 2024 to 31 Dec 2024. Full table can be accessed at MoneySmart