Christine Cupitt

Australia’s life insurers have welcomed the Australian Government’s new Statements of Expectations for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

Council of Australian Life Insurers (CALI) CEO Christine Cupitt said the Government’s new expectations were a strong message that regulation was there to protect Australians without holding back growth, innovation and competition unnecessarily.

“Strong, effective regulation protects Australians and gives them confidence that their life insurer will be there when they need it most,” Ms Cupitt said.

“At the same time, better regulation doesn’t mean more regulation. It means making pragmatic choices that support customer protections, while simplifying or removing rules that are outdated or duplicated.

“A regulatory environment that supports innovation and competition will give Australians greater choice and help ensure life insurance remains affordable and accessible.

“These settings are especially important as our industry looks to provide affordable and sustainable cover that responds to the challenge of rising mental ill-health in the community.”

CALI and its members look forward to working with APRA and ASIC to continue to support a stronger, more innovative life insurance industry, while maintaining strong customer protections.

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CALI CEO Christine Cupitt said a blanket ban would reduce customer choice and restrict Australians’ access to life insurance. She said the industry is seeking an exemption from any broad lead generation ban or other restrictions the Federal Government is considering in the wake of the Shield and First Guardian collapses.

“Life insurance lead generation plays an important role in helping customers access information, compare products and obtain life insurance protection,” Ms Cupitt said.

“A blanket ban for life insurance risks limiting legitimate information and connections that support customers to build their financial safety net.”

Ms Cupitt said a blanket ban would prevent life insurers from receiving customer enquiries from comparison websites, a popular and convenient way for customers to access basic information about financially protecting themselves and their loved ones.

“One in two Australians want personalised advice about life insurance and more people are turning to online tools, including market comparison sites, to learn about life insurance,” Ms Cupitt said.

Lead generation from these sites provides a safe and quick way for potential customers to get more information about the life insurance products that might suit their needs.

“The government should not cut off safe, regulated pathways that help Australians access life insurance.”

Ms Cupitt said CALI would be arguing a strong case for exemption, as well as the urgent need for the Delivering Better Financial Outcomes legislation to be released in full over the coming weeks as the government looks to finalise its promised reform package.

“Australians need easier access to life insurance, not more barriers,” she said.

CALI said an exemption should apply where:

• lead generation is undertaken for the sole or dominant purpose of promoting, referring or facilitating access to a life insurance product or service; and
• the initiating party complies with obligations under the Corporations Act, ASIC Act, Privacy Act and other consumer protection laws.

“This approach keeps reforms tightly focused on harmful conduct while preserving legitimate customer access to life insurance protection,” Ms Cupitt said.

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Christine Cupitt

The number of people accessing financial support because they can’t work due to injury or illness has surged in Australia over the past decade, with two million more Australians now claiming income support payments.

New research commissioned by the Council of Australian Life Insurers (CALI) and prepared by SuperFriend shows that growing demand is putting the nation’s financial safety net under significant pressure.

Income support claims are rising across government, employers and insurers, with mental health conditions the key driver.

“This report shines a light on a major productivity challenge facing our nation. More and more Australians are taking time off work and getting financial support because they’re injured or sick, with mental health conditions often the main reason,” CALI CEO Christine Cupitt said.

“The surge in mental health claims is testing the income support safety net’s ability to cope because it wasn’t built with mental health in mind,” she said.

“No single part of the safety net can tackle this challenge alone. We need a connected and coordinated approach, led by the Federal Government, to respond to the productivity challenge of mental ill-health in our community.”

Ms Cupitt added the lack of coordination across systems can leave people making difficult financial decisions, with consequences extending beyond health and into long-term financial security.

“Without clear, coordinated pathways and earlier access to support across the ecosystem, Australians risk missing out on help that could make a real difference to their recovery and their connection to work,” Ms Cupitt said.

The report finds 8.5 million people accessed some form of income support in the past year, claiming a total of $78.9 billion.

The Cross Sector Project Update, Mapping Australia’s ecosystem of income supports report maps 11 distinct income support systems that together make up Australia’s broader income support ecosystem.

It spans employer-funded sick leave, workers’ compensation, life insurance, social security payments, motor vehicle compensation schemes, veteran compensation and pensions, and early superannuation withdrawals.

Life insurance plays a distinct role within the ecosystem, typically supporting people later in their income support journey. Mental ill-health accounts for around one in three total and permanent disability claims and one in five income protection claims.

“By the time someone turns to life insurance, they have often moved through other parts of the ecosystem. These claims tend to be more complex and longer in duration,” said Ms Cupitt.

In 2023/24, life insurers paid $8.3 billion in income protection and total and permanent disability benefits, supporting approximately 55,000 Australians unable to work, representing 11 per cent of the total national income support.

The research also highlights the complexity of navigating multiple different systems when support is needed.

“This report shows that Australians don’t have a single, clear income support pathway. Many people need financial assistance when they are unwell or unable to work, and it can be confusing to find out where to go and how to apply,” said Dr Ross Iles, Chief Research Officer, SuperFriend.

He said the findings reinforce the importance of keeping people connected to work wherever possible.

“Participating in work has clear health benefits, both on physical and psychological levels for individuals, and on multiple levels of society in general. However, the longer someone is out of work, the less likely they are to return to work,” he said.

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The review, led by highly respected financial sector expert Peter Kell, involves deep engagement with the community, consumer advocates and regulators to ensure the Life Code remains strong, relevant and trusted.

“This independent review is an important part of our industry’s promise and commitment to the people we protect every day,” said the Council of Australian Life Insurers CEO Christine Cupitt.

“It provides a robust, independent process to hear a broad range of views about how we can continue to ensure our industry lives up to the expectations of the community,” she said.

“It is critical that the Life Code reflects the needs of our customers, keeps pace with changing laws and regulations, and is practical and easy to understand.”

The interim report concludes the first phase of the independent Life Code review and sets out initial observations, findings and recommendations, which will guide further consultation in the months ahead on potential improvements to the Life Code.

The next phase of the review will invite further submissions on the interim report’s recommendations and include additional consultation questions.

The consultation period will remain open until 8 May 2026. CALI strongly encourages Australian customers, industry partners and other stakeholders to have their say.

A final report on the independent Life Code review is expected by 30 June 2026.

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Christine Cupitt

Australia’s life insurers welcome the passage of federal laws that will give Australians more confidence about getting a genetic test, knowing it can’t be used in insurance underwriting.

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Christine Cupitt

Australians are at greater risk of scams and dodgy providers as they reveal a deep trust in AI for financial advice, the life insurance industry warns.

A staggering three in five people say they would trust financial advice received from AI-powered programs such as ChatGPT, according to independent research commissioned by the Council of Australian Life Insurers (CALI).

“This isn’t just asking AI to draft an email or fix some grammar. This is real life. We can’t leave Australians with no other option but to put their financial future in the hands of an AI chatbot,” said CALI CEO Christine Cupitt.

“Without the right kind of advice from the right people, Australians are at greater risk of falling victim to scams and dodgy providers,” she said.

The data reveals that AI is now a popular tool of choice for Australians when they need help to make financial decisions, as the Federal Government continues to delay introducing the second part of its financial advice reforms.

Tranche two of the Delivering Better Financial Outcomes (DBFO) legislation would allow life insurers to provide simple advice directly to their customers when they ask for it, at no extra cost to them.

“Australians want and need advice that is simple, accessible and affordable. They shouldn’t have to turn to AI to get it.”

More than one in five Australians surveyed said they thought about using AI to get advice on their life insurance in the past three months alone. It is almost the same amount who considered contacting a life insurer directly.

Alarmingly, almost 20 per cent of people actually received life insurance advice from programs such as ChatGPT in the past quarter.

CALI warns that this growing dependence on informal channels puts working Australians at greater risk of making life-changing financial decisions based on information from unregulated sources.

This is backed up by new data released by the financial services regulator, which shows that one in five Gen Zs are using AI to make decisions about their financial future. The Australian Securities and Investments Commission (ASIC) this week warned that while Gen Zs have “a strong appetite for reputable and trustworthy financial content, many struggle to find it – and their search often leads them to sources designed for engagement rather than accuracy”.

Advice reforms are now more critical than ever, particularly following the collapse of First Guardian and Shield Master Fund, which wiped out the superannuation savings of thousands of Australians.

“We have seen firsthand what happens when people don’t have access to professional financial advice. They are left with no one to talk to, and in the worst of cases, with no financial safety net to lean on when they need it most,” Ms Cupitt said.

The independent research commissioned by CALI shows that more than half of Australians would be more likely to consider getting professional advice on their life insurance if it was more affordable and easier to access.

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Christine Cupitt

The Council of Australian Life Insurers (CALI) has submitted its response to the independent review of the Life Insurance Code of Practice (Life Code), reaffirming its commitment to strong customer protections and continuous improvement.

CALI Chief Executive Officer Christine Cupitt said the review was an important opportunity to hear a broad range of views from the community, consumer advocates, and regulators.

“The Life Code is central to continued trust between life insurers and the Australians they protect,” Ms Cupitt said.

“For the Life Code to remain strong, relevant, and trusted, it must continue to meet the needs of Australians, keep pace with regulatory change, and reflect what the community expects from our industry.”

CALI’s submission supports evolving the Life Code to provide the right protections for customers in an accessible, understandable way. This includes protections for people experiencing vulnerability, financial hardship, or mental ill-health.

The submission also highlights areas where clearer language, simpler structure, and better alignment with the law could improve understanding, consistency, and confidence for customers, without reducing existing protections.

About the Life Insurance Code of Practice

The Life Code establishes enforceable standards that life insurers agree to uphold to guarantee that customers can confidently purchase life insurance, knowing that their insurer will provide assistance when needed. It encompasses all aspects of life insurance, including how products are designed, how they are sold, timeframes to communicate decisions with customers, the claims process, and how complaints are resolved. For more information about the Life Code review, visit www.lifecodereview.org.au.

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The Council of Australian Life Insurers (CALI) has welcomed the introduction of Federal Government legislation banning the use of predictive genetic test results in life insurance underwriting today.

CALI CEO Christine Cupitt said the legislation is an important milestone for Australians and their families, and a further step forward for Government and industry in reinforcing confidence in both predictive genetic testing and life insurance.

“Life insurers have provided people with the protection and certainty they need on their best and worst days. This legislation will give Australians more certainty and empower them towards better health outcomes,” said Ms Cupitt.

“No one should be deterred from taking predictive genetic tests that help them to better manage their health. As life insurers, we want people to access the information they need to make informed choices about their health and to manage it proactively,” she said.

Australia’s life insurers have long supported the responsible use of predictive genetic testing. In 2019, the industry introduced a mandatory standard that restricts the use of predictive genetic test results in underwriting, ensuring Australians could pursue testing with confidence.

Ms Cupitt said the rapid evolution of genetic science has made government action both timely and necessary.

The industry also welcomes the inclusion of a five-year review of the legislation, which will be essential to ensure the law keeps up to date with the ever-evolving predictive genetic testing landscape.

All of CALI’s members recognise that predictive genetic testing can play an important role in giving people peace of mind and supporting them to reduce potential health risks.

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Australians of all ages are feeling the squeeze of rising costs, mental health pressures, and uncertainty about their financial futures, according to new independent research commissioned by the Council of Australian Life Insurers (CALI).

CALI’s 2025 State of Australia’s Safety Net^[1] report paints a picture of a nation under pressure, with younger workers juggling insecure jobs, families stretched by mortgages, and pre-retirees worrying whether their savings will last.

CALI CEO Christine Cupitt said the findings underscore how fragile Australia’s social and financial safety net has become.

“Whether they’re starting out, raising a family, or approaching retirement, working Australians want the same thing: confidence that if something goes wrong, there is a system to fall back on,” said Ms Cupitt.

“Right now, rising mental ill-health, cost-of-living pressures, and limited access to advice are eroding that confidence.”

The report found financial strain is widening the protection gap, with seven in ten working Australians saying cost-of-living pressures are affecting their ability to maintain life insurance. One in three are very concerned, especially those aged 35 to 54 managing mortgages and family expenses.

Across every stage of life, working Australians are struggling to get the financial advice they need. Only eight per cent have received financial advice on life insurance in the past year, despite one in three wanting it. Without professional financial advice guidance, many are turning to informal channels such as social media, and half now say they trust online sources for financial advice.

Social researcher Dr Rebecca Huntley, who led the 89 Degrees East analysis, said these findings point to deeper societal questions of trust and vulnerability.

“This isn’t just a story about life insurance. It’s about how Australians experience uncertainty and where they turn for help,” said Dr Huntley.

“Half of working Australians report that online sources can be trusted for financial advice, yet the risks of misinformation and misunderstanding in these unregulated spaces are high.”

These financial pressures are mirrored in people’s wellbeing. As the cost of living climbs and job insecurity grows, Australians are not only struggling to stay financially covered but also struggling to stay well.

The report also found mental ill-health is now the leading cause of total and permanent disability (TPD) claims, a stark indicator of the pressures facing working Australians.

Featuring new data from SuperFriend’s Indicators of a Thriving Workplace survey, it found that psychological distress and burnout are affecting every generation:

• Young Australians are entering the workforce with heightened psychological vulnerability, with Gen Z and Gen Y reporting the highest levels of burnout, consistent with elevated psychological distress.
• Gen X rates their workload the highest and are most likely to be working more than 40 hours a week.

Dr Natalie Flatt, Chief Mental Health Advisor at SuperFriend, said workplaces have an important role to play in turning the tide.

“Across industries, we’re seeing that financial distress, burnout and psychological strain are strongly interconnected,” said Dr Flatt.

“When people are struggling at home, it shows up at work, and when workplaces don’t feel supportive, it makes recovery harder. A strong safety net starts with compassionate leadership and psychologically safe workplaces, where employees feel safe to share challenges and access the support they need to stay well.”

Ms Cupitt said the report’s findings point to the urgent need for coordinated reform.

“If we strengthen the system now, it will be there to catch more Australians tomorrow.”

CALI is calling on government to:

• Legislate the Delivering Better Financial Outcomes reforms to close the advice gap.
• Establish national mental health targets, fund early-access treatment, and address workforce shortages.
• Establish clear pathways to enable pre-retirees to purchase lifetime income streams for a smoother transition into retirement.

About the State of Australia’s Safety Net 2025

The 2025 State of Australia’s Safety Net^[1]report draws on independent research by 89 Degrees East and insights from SuperFriend, with contributions from KPMG. It explores how cost-of-living pressures, workplace wellbeing and mental-health challenges are reshaping Australians’ financial resilience and what’s needed to rebuild confidence in the nation’s safety net.

———–

Notes:
[1] 2025 State of Australia’s Safety Net 

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Christine Cupitt

Australia’s life insurers will develop a new industry action plan for mental health, aimed at supporting long-term affordability and industry sustainability and delivering greater clarity, fairness, and transparency for customers.

In consultation with industry, medical and workplace experts, a new assessment framework for mental health claims is being developed by the Council of Australian Life Insurers (CALI) over the next 12 months.

This work is part of an industry-wide effort to better align disability insurance cover with contemporary medical evidence and return-to-work practices.

CALI CEO Christine Cupitt said life insurers have a responsibility to act on the growing mental health crisis, and the new framework will bring greater consistency across the industry.

“We have listened to feedback from customers and consumer advocates who feel the claims process can be more transparent and easier to understand. Our goal is to ensure an experience that is fair, transparent, and consistent for every Australian, no matter which insurer a customer turns to,” said Ms Cupitt.

Mental health conditions are now the fastest-growing cause of life insurance claims.^[1]

Nearly one in two Australians will experience mental ill-health in their lifetime^[2], and four in five working Australians worry mental health challenges could affect their ability to work and manage financial commitments.^[4]

Younger Australians aged 18-34 years are even harder hit, with almost three in five at risk of, or experiencing, burnout^[5] and one in four reporting severe psychological distress.

Ms Cupitt said life insurers would always be there for people who are most deeply affected by mental ill-health, but clarity was needed about the role life insurance could play.

“Australia is in the middle of a national mental health crisis, and we need to set clear, evidence-based guidance about the support life insurers provide,” she said.

“Insurers will always be there to help Australians with severe conditions that prevent them from working, but like the NDIS or workers’ compensation schemes, we can’t be the answer for every case.”

CALI will establish an expert panel to provide technical advice on the framework, drawing on medical practitioners, legal specialists, rehabilitation and return-to-work experts, life insurance practitioners, and people with lived experience.

A three-month targeted consultation will be held in early 2026, engaging consumer representatives, mental health advocates, superannuation trustees, financial advisers, and medical professionals.

As part of its work, the industry may look at contemporary medical evidence and return-to-work practices to see if the new approach could provide clarity or support in other similar claim scenarios or circumstances.

The framework is being developed in accordance with CALI’s competition law protocols and is subject to any regulatory approvals that may be required.

The work will run in parallel with the current independent review of the Life Insurance Code of Practice (Life Code) led by Peter Kell, will release a public consultation paper on 17 October and is due to conclude on 30 June 2026.

The new framework will be informed by the outcomes of the Life Code review, which is examining how the Life Code supports customers with mental health conditions, and CALI will engage with Mr Kell during its development.

“Together, the Life Code review and the development of a new disability assessment framework will strengthen how Australians are supported when facing mental health challenges and give Australians confidence that life insurance will be there when they need it most,” Ms Cupitt said.

Building on this commitment, the new industry action plan will:

• provide clarity and transparency to customers by creating a framework that will establish minimum standards for consistent, evidence-based thresholds to better assess mental health claims against
• align where possible, industry guidance and approaches on disability insurance to other income support systems in Australia
• clarify the purpose of disability insurance and better reflect contemporary medical evidence and return-to-work outcomes
• set industry principles on disability insurance that can help achieve genuine indemnification for financial loss of customers.
• maintain stakeholder support by acting fairly and transparently.

———-

Notes:
[1] 2024 H2 COC Results Report scaled to the APRA Life insurance claims and disputes data December 2024.
[2] Australian Institute of Health and Welfare. (n.d.). Summary – Mental health. Australian Government. Retrieved August 24, 2025, from https://www.aihw.gov.au/mental-health/topic-areas/summary
[3] Life Insurance Sentiment Tracker. (2025, June). Wave 9.
[4] SuperFriend. (2025, June). Indicators of a thriving workplace survey. SuperFriend

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