Lifewise is being coordinated by the Financial Services Council (FSC - formerly IFSA) and is being funded by special contributions from the FSC’s life insurance and reinsurance members..
Research conducted by IFSA in 2005 raised the profile of underinsurance, a problem the life insurance industry has been aware of for a while1.
Despite the fact that almost every working Australian has a level of life insurance cover within their super, Australia has proved to be one of the most underinsured nations in the developed world.
In fact, a 2007 Swiss Re research report found Australia ranks 16th in the world for life insurance density and penetration2. And a 2008 survey by the Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum (IFF) revealed that “one in two industry fund members were underinsured by $100,000 or more”3.
Lifewise is an initiative of the Australian life insurance industry aimed at addressing this issue.
Through Lifewise, Australians will be able to find out about:
- the risks they face in everyday life;
- the consequences of not protecting themselves financially from these risks;
- how much life insurance cover they have;
- how much cover they need; and
- the who they can talk to find out more.
Tell me more
The Lifewise campaign aims to encourage Australians to take appropriate steps to protect themselves from the financial hardship that can result from accident, sickness or death.
While some people may have consciously chosen to self insure or rely on family and friends, most Australians have are inadequately insured and don’t know it.
Lifewise has been developed from the belief that everyone should make a conscious and informed decision about whether or not to take out insurance, and then getting the right level of cover. For some that even means having less cover; a small proportion of Australians are over-insured due to default levels in super.
It is our aim to provide the tools that will help Australians understand the risks they face, how much insurance they need and how they can access it.
A long term public awareness campaign is being developed to address the inertia and misconceptions, and help Australians feel confident in dealing with life insurance decisions in the same way they do other insurance matters. The initial stages of the campaign comprise:
Education:
This website has been designed to make it easier for consumers to educate themselves about the risks they face and how they can protect themselves, whether that be via saving or insurance.
Partnerships:
IFSA is working with the life insurance industry and other key stakeholders to develop partnerships of aligned interest and aspirations on this issue.
Public relations and marketing:
Through the life insurance industry and other partners, Lifewise aims to generate significant awareness of what the initiative stands for. We also aim to secure ongoing press interest in the issue and create long term marketing campaigns to enhance consumer awareness.
Research:
Much research has been done on the issue of under insurance already, however further projects will be developed to help inform the initiative and create a long term forward agenda, including quantifying the cost of the problem.
1‘A nation exposed: Investigating the Issue of Underinsurance in Australia’. Research conducted for IFSA by TNS, July 2005
2‘Insurance density and penetration in industrialised countries in 2007’ Swiss Re Economic Research & Consulting
3 AIST Media Release, Tuesday 3rd June 2008