Backing the Needs of Modern Australia

We’re seeing the retail life insurance industry enter a new phase of growth and momentum after a period of rebuilding and renewal. Adviser numbers have stabilised, retail advised sales are strengthening, and technology is helping advisers better support their clients and run their businesses more efficiently.

At the same time, the Australian community is changing quickly; economically, socially and demographically. This is our industry’s opportunity: evolving the way we support those we serve, so more Australians can access the protection they need and want.

A growing gap between need and access

The numbers tell a compelling story. There are more than 15,000 advisers in Australia, though only a small proportion actively write life insurance. In parallel, millions of Australians remain underinsured for even basic income protection.

Australians want support that helps them get back to health and work.

The good news is that new talent is joining the profession. More than 500 advisers joined the Financial Advisers Register in 2025, the strongest run of new entrant growth since 2018. This renewal is critical to closing the gap between need and access, and it’s an encouraging sign of where the industry is heading.

Key shifts defining Australians’ protection needs 

Several shifts are redefining what Australians need from their protection.

How Australians are feeling. Australians are thinking differently about work, health and recovery. Mental health is now central to this, and increasingly important in the design of protection, particularly to support recovery. Australians want support that helps them get back to health and work.  At the same time, affordability and cost-of-living pressures are shaping where protection sits in household priorities.

AI has moved from novelty to habit, influencing how people research…

How people are engaging. For consumers, AI has moved from novelty to habit, influencing how people research, make decisions and who they trust. Unlike Australia’s financial advisers who operate within strict regulatory frameworks, free AI tools do not have the same guardrails that underpin trusted adviser relationships. As more Australians turn to digital tools for guidance, the value of human advice becomes clearer. Trust, context and judgement remain critical.

How the landscape around us is changing. Financial safety nets Australians have relied on (such as the NDIS) are under pressure, reinforcing the importance of the private safety net and the broader support ecosystem our industry provides. The role of advice in helping Australians build financial and personal resilience has never been more important.

Customer-focused innovation

Recognising these shifts, we’ve focused on responding in practical ways.

Recovery from illness or injury is rarely linear, but product design has not always reflected this reality. Some products, particularly total and permanent disability (TPD) insurance, were built around binary outcomes, despite conditions such as mental health and some functional conditions following uncertain or variable recovery paths.

Momentum is returning to our industry…

During testing of our recently launched TPD Support Option, customers saw real value in flexible support when outcomes are uncertain, while maintaining strong protection where permanent incapacity is clear. Product innovation that introduces flexibility is key to the accessibility of protection.

On the technology side, we’ve increased our investment in digital capabilities because we know making it easier to do business is a real priority for advisers. Digital tools help advisers deliver more relevant client experiences while reducing the cost to serve. Our Inforce Management digital tool brings inforce policy information into a single, intuitive dashboard, giving advisers faster, more secure and insight-rich management of their book and more time to focus on their clients.

A deeper lens on modern Australia

Responding well to change requires understanding it deeply. That’s why TAL has partnered with McCrindle to develop the Modern Australia Index, an annual research initiative providing advisers with a clearer view of the forces shaping their clients’ lives today, and where Australia is heading next.

The Index will explore the issues increasingly defining adviser-client conversations, including financial pressures, digital behaviours, generational change, health and wellbeing, and attitudes toward protection and advice. Its longitudinal design will allow advisers to track how these factors evolve over time, turning broad social trends into insights they can apply in real client conversations and business planning.

This is about providing valuable context, because advice does not happen in a vacuum.

Staying relevant 

Momentum is returning to our industry, but relevance to customers will determine what comes next.

Australians’ needs are changing, shaped by changing experiences and expectations around health and wellbeing, cost pressures, and the way technology now influences trust and decision-making. Our job is to respond with protection designed for modern needs, smarter tools for advisers, and a stronger understanding of the context clients bring into advice conversations.