It’s often said that life insurance is sold and not bought. That nobody wakes up in the morning and says “I might buy some life insurance today!”

This is probably even more true for younger Australians. Recent research by the Council of Australian Life Insurance (CALI) found that take up of life insurance has declined by five per cent for 18–34-year-olds as they deal with cost- of- living pressures and lack access to quality, affordable financial advice.

It’s why the life insurance industry is always evolving to better meet the needs of younger Australians. As Gen Z and Gen Alpha enter the workforce and start planning for their futures, it's crucial for the industry to understand their unique perspectives and insurance needs.

The reason they don’t have life insurance is because they don’t know where to get it. The majority don’t have access to financial advice – any advice they do get comes from family, friends and social media.

Indeed, social media continues to increase as a key source of information for younger Australians, who have grown up in a fully digital world. We can make life insurance more trusted, relatable and accessible by meeting them on platforms that they want to engage on.

Darren Leonard, Acenda’s Northern Underwriting Manager NSW/QLD, recently joined a panel discussion at CALI’s Wild for Life conference, exploring the experiences of younger Australians, and how the industry is addressing their unique needs

Darren said one of the key challenges is engaging younger people in an increasingly fragmented digital world.

“Gen Z and Gen Alpha are far more likely to build trust with online influencers than a brand. Unsurprisingly, some advisers are now getting referrals from podcasters, and this is a huge area of opportunity," he said.

“It’s not just about being able to buy a product online – we need to design our products to meet the needs of the digital world. At Acenda we have VIVO, a health, wellness and recovery program which includes Vivo Virtual Care, a suite of support services that customers can access without making a claim.

“Customers can access nutrition and fitness services and support for mental health, among other things. They can go online, request a consultation, have video calls with an expert, devise a plan and then have further follow-ups.

“We are looking at how we can make Vivo even more accessible for customers, and we are also exploring technology to simplify the underwriting process so we can speed up decisions and ultimately make life insurance more accessible for more people."

Darren said it’s critical that younger Australians can also access affordable financial advice, particularly during a cost-of-living crisis when they have to make important decisions about their finances and their financial future.

“We’ve seen advisers leaving the industry in significant numbers in recent years. Across Australia, there are now around 150 ‘pure risk’ advisers, data compiled for the 2023 ARdata Life Insurance Study shows. In other words, less than one per cent of the 15,800 retail advisers in the country fall into this category," he said.

“Acenda is supportive of the Government’s advice reforms because it’s important that all Australians, including young Australians, can get access to advice to make the right decisions.”

"Young people don’t see the value of life insurance and the importance of taking it up early in life, especially when they are dealing with cost-of-living pressures.

“We know from CALI’s research that people are more inclined to insure their car before they insure their life. Yet what happens when they have an accident in that car and can’t work for a period of time?

“Who’s going to look after them when they can’t earn an income? Who’s going to pay the mortgage or the rent and put food on the table?

“A life insurance policy is an investment in their biggest asset which is their earning potential. It gives them protection when things go wrong so they can continue to take life on.”

Darren Leonard is Acenda’s Northern Underwriting Manager NSW/Qld and ALUCA Underwriting Chair. He recently joined a panel discussion at the CALI’s Wild for Life conference to explore the experiences of younger Australians, and how the life insurance industry is addressing their unique needs including improving access to affordable and tailored financial advice and developing fit-for-purpose products.