CALI Advocates for Reforms to Bridge Financial Advice Gap for Young Australians

The Council of Australian Life Insurers (CALI) has highlighted a significant gap in access to affordable, professional life insurance advice among young Australians.

A recent study conducted by CALI reveals that only 11% of 18-to-34-year-olds obtain formal financial guidance, with the majority relying instead on advice from informal and often inaccurate sources such as friends, family, social media, and online forums.

Despite nearly half of the respondents expressing a desire for professional advice, especially personalised guidance tailored to their individual financial needs and circumstances, a significant portion turn to unverified channels. This trend underscores the importance of offering accessible, targeted advice for Australians at various life stages. According to CALI's CEO Christine Cupitt, the necessity of affordable, specialised support is vital for the younger generation, who are eager to make informed financial decisions but find professional services beyond reach.

Three primary life events prompt the youth to consider life insurance: changes in financial circumstances, witnessing a family member's health issues, or experiencing personal health challenges. Christine Cupitt noted that these pivotal moments drive individuals to reevaluate their financial safety net. However, lacking access to qualified advisers, young Australians often resort to assembling their financial strategies through informal sources, potentially jeopardising their financial stability.

CALI's findings from 2024 further suggest that young Australians stand to significantly influence the growth of life insurance in the financial advice sector in the coming years. This is propelled by factors such as the intergenerational transfer of wealth, larger mortgage commitments, a dwindling adviser workforce, and increasing dependency on referral networks.

The introduction of a new adviser class by the Federal Government could potentially widen access to professional advice and clear the path for individuals aspiring to join the advice industry. Christine Cupitt agrees, saying, "Younger Australians deserve the support that aligns with their financial ambitions and the peace of mind for their future. Although we appreciate the Government's dedication to reform, immediate action is crucial to bridging the current gap between the demand and supply of financial advice." Ensuring broader access to professional advice is critical as the industry adapts to evolving financial landscapes and demographic needs.

Published:Monday, 4th Aug 2025
Source: Paige Estritori

Share this news item:

Insurance News

Rising Group Premiums Pose Challenges for Australian Life Insurance

28 Aug 2025: Paige Estritori

Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more

Concerns Arise Over Construction Code Pause Amid Housing Push

28 Aug 2025: Paige Estritori

The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector. Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia. This move comes in response to challenges in the approval process, which often delays construction. - read more

RACQ Insurance Ordered to Increase Payout After Claim Handling Flaws

27 Aug 2025: Paige Estritori

RACQ Insurance has been instructed to bolster a payout to a customer following a ruling by the Australian Financial Complaints Authority (AFCA). The dispute arose after the insurer's handling of a house fire claim lodged by a woman in October 2023 was found lacking. The fire, initiated by scented candles, resulted in significant fire and smoke damage to her home. - read more

ASIC Review Puts Life Insurance Sector Under Scrutiny

26 Aug 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has spotlighted significant shortcomings in the direct sale of life insurance products, urging the industry to reassess its sales practices. The recent review unearthed ongoing issues with remuneration structures, indicating that some insurers still link commissions to sales targets, potentially fostering aggressive sales tactics. The study further revealed a troubling rise in claims disputes, with reported cases more than doubling since 2018, raising concerns about the transparency and trustworthiness of these policies. - read more

Ombudsman Sides with Insurer on Imposed Excess Dispute

25 Aug 2025: Paige Estritori

A recent ruling by the Australian Financial Complaints Authority (AFCA) has upheld an insurer's decision to impose an additional $2000 excess on a property policy, following a dispute raised by a policyholder over claims history impacts. - read more

Strata Insurance Articles

What Does Strata Insurance Cover? A Comprehensive Breakdown

Strata insurance is a specialized insurance policy designed to cover common property in apartment buildings, townhouses, and other strata-titled developments. This type of insurance is crucial for both property owners and strata schemes, as it provides peace of mind in the face of potential risks. - read more

Factors Influencing the Cost of Strata Insurance

Strata insurance is a specialized type of insurance designed to cover common properties and shared facilities in multi-unit developments, such as apartments and townhouses. This insurance provides protection for the building structure, common areas, and sometimes the individual units against various risks like fire, theft, and natural disasters. - read more

Step-by-Step Guide to Filing a Strata Insurance Claim in Australia

Strata insurance is a specialized form of insurance designed to protect the shared areas of a property, typically seen in apartment complexes or townhouses. It covers communal assets like hallways, gardens, and recreational facilities. This type of insurance is crucial for both property owners and managers, as it safeguards against potential risks and liabilities associated with shared living spaces. - read more

Strata Insurance Explained: What’s Not Covered and Why It Matters

Strata insurance is a type of cover designed specifically for properties that are subdivided into individual lots or units, which is common in residential and mixed-use developments. It protects the overall structure and shared areas of the property and is usually managed by a strata management body. This insurance is crucial not just for safeguarding the building itself but also for ensuring that common property, such as gardens, hallways, and balconies, is covered against a range of risks. - read more

Understanding the Key Differences Between Strata Insurance and Home Insurance

Strata insurance is a specialized type of insurance designed to cover multi-unit properties like apartment buildings and townhouses. It protects the common property and the shared interests of all owners within the strata scheme, offering coverage for facilities like pools, gardens, and shared structures. - read more

Knowledgebase

Underwriting:
The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.