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Australia’s life insurance industry is facing a persistent challenge: millions of households remain uninsured or significantly underinsured, despite strong awareness of the financial risks associated with illness, injury and premature death. Recent industry data highlights the scale of the issue, with an estimate of 1 million Australians underinsured for death and TPD, and 3.4 million having no or insufficient income protection.[i]
With adviser numbers declining and traditional advice channels unable to meet national demand, General Advice has become an increasingly important part of the industry’s strategy to improve accessibility and consumer outcomes.
Consilium Advice Australia, a specialist licensee for General Advice advisers, believes the model plays a critical role in addressing this gap.
“General Advice gives Australians the education they need to understand their options. When people understand what life insurance is, how different types of cover work, and what factors they should consider, they are far more likely to take action. Education drives engagement and engagement drives protection.”
The underinsurance issue is not due to a lack of available products, but rather a lack of accessible pathways for consumers to understand them. General Advice helps bridge this gap by offering a structured, compliant and scalable way to deliver that education. This need for education is reinforced by recent consumer research, with Reports finding that 38% of Australians have purchased insurance without fully understanding the cover.[ii] Many consumers remain unclear about the differences between Life, TPD, Trauma and Income Protection, a knowledge gap that General Advice is specifically designed to address.
General Advice supports improved consumer outcomes by providing:
- Improved access for consumers seeking guidance without requiring personal recommendations.
- Clear and consistent education about product types, features and key considerations.
- A scalable model capable of reaching a broader audience.
- A pathway that encourages informed decision‑making.
For advisers, this creates opportunities to engage more people, deliver education efficiently and operate within a well-defined regulatory framework. For new entrants, it offers a structured and supervised pathway to build capability and confidence.
Consilium Advice Australia notes that the General Advice model is gaining momentum as insurers, advisers and consumers increasingly recognise its value. However, it also emphasises that General Advice is not intended to replace other advice models:
“It is a complementary pathway that ensures every Australian regardless of age, background or financial sophistication can access the information they need to protect themselves and their families.” “If we want to close the underinsurance gap, we must ensure Australians can access clear, reliable and consistent education about life insurance. General Advice is the most effective way to achieve that.”
[i] TAL Media Centre – TAL partners with Cover Genius to launch backed by TAL Cover Genius and TAL innovate to address underinsurance | TAL
[ii] Choosi Insurance Gap Report 2025, “Knowledge and Understanding”, https://www.choosi.com.au/blog/insurance/insurance-gap-report
