MetLife releases Value of Life Insurance report

From

Richard Nunn

MetLife Australia has released a new report on the role of the life insurance industry for individuals, the economy and society.

The Value of Life Insurance report provides policy makers, regulators, industry participants and other stakeholders with information about the positive impact and contribution of the sector, and is a further step towards increasing financial literacy for Australians.

The report draws from MetLife’s local and global research and seeks to redress perceptions which increase consumer disengagement and contribute to a worrying underinsurance gap, which has been an ongoing and increasing problem for Australia’s working age population.[1] This gap is further exacerbated by factors impacting life insurance customers such as access to quality, affordable advice and understanding recent legislative changes.

The report explores the role life insurers play as a driver of economic development, and in stabilising the financial system, and provides global comparisons to articulate the affordability of the safety net when misfortunes happen in life. It also connects the industry’s value to a reduced financial burden on governments and taxpayers, who would otherwise need to fund social programs to support those impacted by illness and injury, or families left behind following the death of a loved one.

Richard Nunn, CEO of MetLife Australia, said: “Life insurance serves a noble purpose by providing a vital safety net should the worst happen, but we need to make its value easier for people to understand. The industry is under the microscope, facing significant regulatory change and shifting consumer expectations. Now is the time to work together to adapt, educate and remain relevant.

“It is the responsibility of all industry participants to play a positive role in helping stakeholders understand the value of life insurance and to promote this message to a wider audience. That’s why MetLife’s Value of Life Insurance report is available to all stakeholders, to help them have conversations around value.

“It is imperative we continue to build awareness of the advantages of life insurance, not just to the individual consumer but to the economy and the community.”

Read the full report.

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