Australians value houses more than health

Many Australians put greater emphasis on home insurance than health or life insurance, according to the survey by life insurer AIA Australia.

The report, which surveyed a sample of 1,000 Australians aged over 18, found that although health and life insurance were seen by life insurance holders as being “primary” insurance product, they did not rank them as high as a priority as house insurance.

Following this, the “secondary” category were income and disability insurance while crisis, funeral and business expenses insurance were described as “tertiary” insurance.

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Additionally, AIA Australia and New Zealand chief executive, Damien Mu said that the report showed that two in five Australians (39 per cent) had either a “slightly negative” or “very negative” view of life insurance, while another 36 per cent were neutral and only 14 per cent were “very positive” or “slightly positive”.

“The fact that the number of people with policies are less inclined to have a “slightly negative” or “very negative” view about life insurance shows the industry is improving in how it relates to customers,” he said.

“But there is much more we need to do to earn, and in some cases rebuild, people’s trust in the industry.”

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The insurance industry can start by leaving policies with level premiums alone. Every time you re-rate these premiums you undermine the client's trust in the insurer and also in the adviser. Those clients with stepped policies are fair game, but not those with level premiums...

Insurance often seems more complicated than it should be, where owning your own home is fully understood as a basic fundamental requirement to your security. health insurance is way to complex. The Gap payments are starting to really annoy a lot of people given how much the premiums are. I am starting to hear of members dropping out of health insurance. The system needs a revamp with a cap on gap payments. Otherwise more of the healthy younger members will drop out, leaving a higher risk pool and higher premiums. There will be a snowball effect. The industry needs to act fast before its too late.

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