ANZIIF highlights insurance as lifeline in cost-of-living crisis

ANZIIF highlights insurance as lifeline in cost-of-living crisis | Insurance Business Australia

Insurance News

ANZIIF highlights insurance as lifeline in cost-of-living crisis

Insurance brokers and financial advisers urged to engage with clients

Insurance News

By
Roxanne Libatique

The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) is drawing attention to the crucial role insurance plays in helping Australians manage financial pressures, as the cost of living continues to rise.

Recent data from the Australian Bureau of Statistics showed that employee households have experienced a 6.2% increase in the Living Cost Indexes, outpacing the current inflation rate of 3.8%. This significant gap is intensifying the cost-of-living challenges, making it harder for many Australians to afford essentials like housing, food, and utilities, leading to higher levels of financial stress.

In response to these pressures, ANZIIF has noted a trend where financially strained households often cut back on insurance coverage to reduce expenses.

“Unfortunately, when households are under financial stress one of the first places people seek savings is with their insurances. This is when insurance brokers and financial advisers can understand the needs of their clients and ensure their clients obtain the right cover,” ANZIIF said.

The institute continued to emphasise the importance of insurance in providing financial security, arguing that proper coverage is essential for protecting against unexpected financial challenges and maintaining long-term financial goals.

Currently, the institute is preparing to host its annual Group Life Seminar. The event, available both in person and online, will bring together life insurance professionals to discuss current trends, challenges, and future developments in the industry. It will feature sessions on topics such as the impact of health and wellbeing platforms in the life insurance industry and the use of artificial intelligence for fraud detection.

Heather Gray, lead ombudsman for superannuation at the Australian Financial Complaints Authority (AFCA), is slated to present her analysis on recent data, emerging trends, and key themes in the life insurance sector.