Underinsurance remains a quiet crisis in Australian life insurance

As the financial landscape shifts, more Australians are taking greater ownership in their financial futures with a rising interest in life insurance. NobleOak’s latest Life Insurance Pulse Report reveals 60% of Australians now hold some form of life cover - an encouraging shift from 55% just a year ago.

- Anthony Brown, chief executive, NobleOak Life

But while headline figures suggest positive momentum, a deeper look tells a more complex story: underinsurance is becoming a growing concern, even among those who already have policies in place.

According to our research, nearly one in four (23%) life insurance policyholders believe they don't have enough coverage to meet their needs. This should concern insurers, advisers, industry leaders and customers alike.

Insurance coverage levels are falling short of real needs

Life insurance (which includes a suite of products including life cover, income protection, TPD and trauma) is often positioned as a safety net. Yet for too many Australians, the net may not be strong - or wide - enough to withstand the financial impact of an unexpected event.