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Australia’s $3.1 Trillion Underinsurance crisis

CommInsure have released the results of a report they commissioned to collect the latest insurance statistics available, including data about consumer attitudes and behaviour.

The report confirms the perennial and worsening state of our nation’s underinsurance problem. Some of the key findings were:

  • Australians are currently underinsured by $3.1 trillion
  • Only half – 56% – of Australians have life insurance
  • Of those who do 65% only have the default level of life insurance in their super fund
  • The majority of those have insufficient cover
  • Younger Australians and low income households have the highest underinsurance rate
  • More than half of Australians would have to rely on Centrelink if a family member suffered a terminal illness or passed away. The average weekly Centrelink Disability support pension is less than $350
  • 7 in 10 Australians know someone who has suffered a trauma yet only 8% have trauma cover themselves
  • One in six male workers aged 35-65 will likely suffer a disability which leaves them unable to work for six months or more

Some of the consumer attitudes and behaviours revealed were:

  • After a brush with death Australians are more likely to go on holidays (46%) than get insurance (34%)
  • Many Australians, particularly the young and healthy, believe they won’t be affected by serious illness or injury
  • Many Australians hold only minimal cover and believe it’s too expensive when for less than $30 a month a non smoking man aged 35 can get $500,000 life cover
  • The top reasons given for taking out extra cover are when a mortgage is taken out, on the encouragement of friends/family and on the birth of a child

If you want to take out insurance or top up your existing insurance you can compare quotes online from a wide range of insurers by using our Compare Insurance Quotes Online

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