The Chief Executive and Managing Director of Acenda, Kent Griffin, says the life insurance industry has a vital role to play in Australia’s safety net to help address some of the nation’s biggest economic and health challenges.

Mr Griffin was speaking at the Council of Australian Life Insurers (CALI) conference in Sydney. He is the Co-Chair of CALI which represents Australia’s life insurance industry.

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

“Indeed, Australia needs us more than ever. A strong life insurance sector can play a vital role in Australia’s safety net and address the nation’s twin policy challenges of an ageing population and soaring healthcare costs.”

Mr Griffin said the life insurance industry was operating in a landscape undergoing significant change because of regulatory and demographic changes, and economic uncertainty. He said access to affordable, quality advice was critical in helping Australians to manage their financial security. 

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

Mr Griffin said life insurance had been a critical part of Australia’s safety net since the goldrush and provided Australians with peace of mind during life’s biggest challenges and reduced the reliance on social welfare and disability schemes.

“Each year around 85,000 Australians receive more than $11 billion from life insurance claims. Life insurance is a trusted option for consumers. 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.”

Empowering Australians through more affordable and accessible life insurance

Mr Griffin called for solutions that will not only support access to life insurance for more Australians but make it more affordable and appropriate for their needs. 

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

He said the Government’s latest tranche of financial advice reforms were a positive step, but more can be done. 

“The Government has 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 to Parliament as a single package. With this commitment from Government we are making progress.

“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.”

Read the full keynote address by Kent Griffin here.