Insurance coverage gap for women, vulnerable Australians continues to grow

According to the report, recent legislative changes to end default insurance cover for younger super fund members and those with lower balances or inactive accounts may have unintentionally disadvantaged young women and people living with a disability who are statistically more likely to fall into the aforementioned categories.

The report comes to the conclusion that it is important to engage super fund members through awareness and education. It also highlights the need for flexible product design to meet super fund members’ needs, how immediate intervention leads to better outcomes, the role of advice, and how technology can be used for better member experiences.

“Our industry is reaching an important juncture,” said MetLife Australia chief of staff, strategy, and external affairs Wendy Tse. “Increasing household financial pressures and cost of advice will likely see many Australians risk life without insurance, exacerbating Australia’s underinsurance problem. The lack of financial literacy is a contributor to this, as people fail to see the value of life insurance.”

Tse added that that MetLife has found a connection between financial wellness and general wellbeing, so action is needed to ensure that Australians – particular society’s most vulnerable – can weather future economic pressures and make informed decisions on insurance coverage.

“Insurance is about preserving a way of life, not only a means to protecting against an adverse event,” said the chief.

In related news, MetLife Australia recently announced that it had simplified the medical thresholds for its MetLife Protect and MetLife Protect products. The insurer indicated that it would be using “mini-checks” instead of full medical exams for underwriting applications, depending on the type and level of coverage. It is hoped that by streamlining the application process, MetLife will make its products more accessible.