Introduction

Good morning everyone and welcome to CALI’s inaugural conference.

I would like to start by congratulating and thanking Christine and the team at CALI for organising today’s event, and for bringing all of us together. Today we have an opportunity to discuss the challenges and opportunities for our industry, and how we can ensure it is sustainable into the future. It is a worthwhile goal as life insurance continues to play a vital role in the financial wellbeing and resilience of Australian families.

Take Life On – a call to action

I am privileged to be here today both as the Co-Chair of CALI, and also as the Chief Executive and Managing Director of Acenda.

MLC has been an iconic brand in life insurance – one that has protected millions of Australians for more than 138 years. As we now change to Acenda, our core value of serving our customers and partners will continue. Our long-term commitment to the Australian life insurance industry is clear from the recent announcement by our parent Nippon Life, that we will be merging with Resolution Life Australasia, and because of that commitment we are proud to be the Gold Sponsor of this inaugural conference.

Life insurance provides people with peace of mind that their financial needs will be covered should the worst happen.

It provides confidence to embrace possibilities and seize opportunities rather than being held back by uncertainty.

But it’s more than that.

As an industry, we have never had a better opportunity to work together to address our challenges and embrace the opportunities in front of us. To build a new vision for Australia’s life insurance industry.

Indeed, Australia needs us more than ever.

A strong life insurance sector can play a vital role in Australia’s safety net, addressing the nation’s twin policy challenges of an ageing population and soaring healthcare costs.

The changing landscape

It’s no secret that our industry is operating in a landscape that is undergoing significant change.

Demographic, economic and regulatory change present both challenges and opportunities for our industry.

By 2066, almost a third of Australia’s total population will be aged over 65. We are living longer, healthier lives which is ultimately a good thing, but underscores the need for financial security.

The rising cost of healthcare is a growing concern. In 2023, $82 billion was spent on chronic conditions. A high proportion of this related to mental illness particularly in younger people.

This cohort are leaving the workforce permanently in alarming numbers. In fact, Total and Permanent Disability claims for 30–40-year-olds have increased 732% over the past decade, driven largely by an increase in mental illness claims¹.

These challenges are compounded by a global economy marked by uncertainty and volatility.

The escalating cost of living is squeezing household budgets. Australians are being forced to prioritise their immediate financial needs over long-term financial security – many younger Australians can’t even contemplate buying a home let alone purchasing life insurance or planning for retirement.

Recent data from CALI revealed the impact of growing economic pressures on financial security and wellbeing. It is no surprise that Australians are concerned about their ability to take out, or to continue paying for, life insurance in the current climate. Four in 10 life insurance customers said they would either cancel or modify their cover if affordability became an issue².

Access to affordable, quality advice is critical in helping Australians manage their financial security – when tragic and unexpected events happen they can have a devastating impact on financial outcomes and quality of life.

Advisers are uniquely placed to support clients in navigating insurance options that align with their situation – often having those difficult conversations no one really wants to have – what will you do if the worst case should happen?

We know there is a large, unmet need for advice and guidance on life insurance. CALI’s latest sentiment tracker shows 33% of working Australians sought or considered financial advice in the past three months. But only 7% actually received it.

There is universal agreement across the industry and government about the importance of improving access to quality, affordable advice.

Pleasingly, advice reform is imminent – we welcome the release of draft legislation on tranche 2 of DBFO reforms – and urge whoever forms government after the election to ensure advice reform remains a priority.

And after a tough few years we are seeing the advice market start to stabilise. Six hundred and fifty new financial advisers joined the advice industry last year³. The number of advisers writing life insurance also continues to increase⁴. One in two people who received advice about life insurance in the past three months got it from a financial adviser⁵.

The value of life insurance

Life insurance has been a critical part of Australia’s safety net since the goldrush. It provides millions of Australians with peace of mind during life’s biggest challenges and reduces reliance on our social welfare and disability schemes.

It gives Australians the confidence to live more freely and confidently. Knowing that their families are protected, individuals can take calculated career risks, invest in their future, or start families.

Each year, around 85,000 Australians receive more than $11 billion from life insurance claims. As an industry we pay more than 95% of claims⁶.

Life insurance is a trusted option for consumers⁷ – customers who purchase life insurance place great value on the peace of mind it affords and trust their life insurer will be there when they need them.

We are however part of a safety net that is under increasing strain due to our ageing population, increasing heath costs, and the economic pressures on our younger generations.

Fewer people are taking out life insurance today than they were 10 years ago.

According to research commissioned by CALI, nearly 80 per cent of working Australians have car insurance while only a
third have life insurance.

For many, the greatest asset they have is their potential to generate future income. Their families and their lifestyle depend on it, and yet fewer are protecting this critical asset. Yet we are a country in which people are more likely to insure their cars before they will insure themselves.

We must therefore improve the accessibility, affordability and appropriateness of what we provide for Australians.

It’s time for an ambitious, forward-looking agenda

Our industry can play a key role in improving the overall health and wellbeing Australians. I applaud the work of CALI and the industry to date in building trust and recognition with our key stakeholders. CALI is two years old and has become a strong voice in policy debates about health, disability and financial services in Australia.

We can develop solutions that support access to life insurance for more Australians and help alleviate the growing strain on our nation’s safety net.

We must continue to work together as an industry to embrace a comprehensive agenda of reform.

The latest tranche of the Government’s financial advice reforms, released in March, will help to simplify the advice framework, ensuring more Australians can access advice in a format that is easy to understand and tailored to their individual needs.

This is a positive step however more can be done. The Government has also committed to developing the remaining pieces to modernise the best interest duty and create a new class of adviser, and that these combined with the draft legislation released will be introduced into Parliament as a single package. With this commitment from Government we are making progress.

Finally, we must continue to build trust with customers. To remain relevant and trusted, the life insurance industry must continue to evolve. This means improving product simplicity and transparency, ensuring advice and interactions are ethical and customer-centric, and using data and technology to enhance the customer experience.

Affordable and accessible life insurance not only reduces the cost of public services, but it will empower millions more Australians to make choices and take risks with confidence.

By working together as an industry, we can create an environment that fosters growth, stability and financial security for generations to come.

Close

I hope you enjoy the conference.

Thank you.

² _{CALI Life Insurance Sentiment Tracker, Wave 7, March 2025}
³ _{FAAA 2025}
⁴ _{Adviser Ratings 2024. Life Insurance Benchmark Study}
⁵ _{CALI Sentiment Tracker Wave 7, March 2025}
⁶ _{CALI Life Insurance Fact Book}
⁷ _{CALI Life Insurance Sentiment Tracker, Wave 7, March 2025}