David Sarkis

Australians are questioning the value of their life insurance, turning to their financial advisers to help them decide whether to cancel, reduce or retain their life insurance cover.

A perfect storm of rising interest rates, the cost-of-living and premium hikes, coupled with demographic and health changes, has left many Australians unsure of the value of their life insurance policy.

According to iExtend CEO David Sarkis, this uncertainty is making more Australians waiver in their commitment to continue their life insurance cover, who view it as more of a liability than an asset.

“As a result of a range of financial and demographic pressures, we have seen more Australians change their view of their life insurance and are seeking to cancel it.”

According to the Council of Australian Life Insurers, 68% of Australians are concerned that cost of living pressures will impact their ability to afford or continue paying life insurance, in comparison 23% of Australians would consider cancelling their life insurance if affordability were to become an issue.^[1]

“The impact the cost of living is having on life insurance cannot be underestimated, with many Australian households feeling the pressure of daily life, leading them to consider cancelling their policies to alleviate the immediate burden of meeting premium payments,” said Sarkis.

Seven key factors driving policy cancellations are:

1. Rising premiums – Life premiums are expected to increase by 1.5% in 2025 in advanced markets while in emerging markets like China, India, and Latin America premiums could increase by 5.7%.^[2] This outlook erodes confidence in the value of sustaining life insurance for the long-term.
2. Increased prevalence of chronic health conditions – Two in five Australian workers (39%) are living with a chronic condition.^[3] A change in health circumstances and the decision to cancel a life insurance policy, are two requirements of iExtend’s qualification criteria.
3. Aging population – By 2066, people aged 65 and over will make up between 21% and 23% of the total Australian population.^[4] As Australians get older, issues such as insurance and estate planning become more top of mind for more Australians.
4. Cost-of-living – The monthly Consumer Price Index (CPI) indicator rose 2.3 per cent in the 12 months to November 2024, up from a 2.1 per cent rise to October.^[5] Sustained financial pressure has many Australians looking for ways to cut discretionary costs.
5. Intergenerational wealth transfer – The Productivity Commission estimates the transfer of intergenerational wealth to be $3.5 trillion in assets by 2050.^[6] Wealth redistribution and estate planning will become a major driver of estate planning and in decisions around life insurance.
6. Property and business sales – The cost-of-living crisis is one of the key challenges facing the Australian property market in 2025, driving more Australians to sell their property and business, regardless of timing.^[7] In this situation, life insurance policies become a long-term asset that can retain some of its value through a co-ownership arrangement.
7. Accessibility to advice challenge –With approximately 15,400 advisers in the Australian advice industry, accessing professional financial advice to help Australians evaluate all their financial options before they cancel their life insurance and retain no value is an ongoing challenge.^[8]

iExtend offers a unique alternative to life insurance policyholders who have committed to cancelling or reducing their life insurance. iExtend pays all premiums on co-owned life insurance while future claim benefits are shared with the policyholder, their beneficiaries or estate, with the claim split based on how long iExtend has been paying the premiums.

One in four of the policies assessed by iExtend is retained by the policyholder, demonstrating the value that would have been lost and offering a vital retention strategy for advisers who can maintain their commitment to being there when their client needs them most.

“iExtend is working with advisers and their clients to ensure they make informed choices about the future of their life insurance policies, decisions which impact families and generations of Australians,” said Sarkis.

———

Notes:
[1] Council of Australian Life Insurers ‘The State of Australia’s safety net’ Report
[2] Deloitte Centre for Financial Services 2025 Global Insurance Outlook
[3]Chronic Health Conditions in the Workplace 2024 Report
[4] The Australian Institute of Health and Welfare, based on ABS data as at 30 June 2020
[5] ABS Monthly Consumer Price Indicator November 2024
[6] Productivity Commission Wealth Transfers and their Economic effects Report November 2021
[7] What to expect from the property market in 2025, FirstLinks, Morningstar company
[8] Wealth Data Financial Adviser Market Insights Jan 9, 2025

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David Sarkis

iExtend has been granted its Australian Financial Services License (AFSL) by the Australian Securities and Investments Commission (ASIC), marking a significant development in the business’ history and future growth.

The AFSL validates and strengthens iExtend’s offer to provide Australians with the opportunity to extend the life of their existing life insurance policy when they otherwise make the decision to cancel it.

It also broadens the scope of iExtend’s offering, enabling iExtend to fully participate in the financial services market and to provide financial advisers with stronger support to help their clients with insurances that would otherwise be abandoned by them. Importantly, the AFSL provides a clear and definitive decision on how iExtend fits into a regulated market.

iExtend’s CEO David Sarkis commented: “iExtend is pleased to accept the certainty provided by the issue of an AFSL, the result of a consultative process between ASIC and iExtend.  This provides a pathway for how innovation such as iExtend can best participate in this industry and within a consumer protection focused framework.”

The approval of iExtend’s AFSL confirms iExtend is:

• Licensed to operate within its licence terms of the Australia financial service sector.
• Compliant with the standards of the industry, providing reassurance through the validation and simplification that an AFSL provides.
• Able to deliver the added resources and support that come with holding an AFSL such as Product Disclosure Statements, Financial Services Guides and supporting documents.
• Holding Professional Indemnity Insurance required as an AFSL holder.
• A Member of the Australian Financial Complaints Authority (AFCA), providing policyholders an alternate dispute resolution process.

Further, with the appropriate authorisation for iExtend personnel to provide general advice, there is now greater scope to support a referral and introduction relationship to the iExtend offering.

iExtend has received strong support from several advice groups including Lifespan Financial Planning, Advice Evolution, MBS insurance, Life Experts and Newlane Risk, some of which iExtend is also an education partner. iExtend believes there is a growing industry acknowledgment that it is important to make clients aware of the iExtend offer as an alternative when discussing life insurance cancellations with clients.

These groups recognise iExtend provides an opportunity for policyholders to maintain some of their original life insurance cover after they have otherwise determined to cancel.

iExtend considers policies where the policyholder has already committed to fully or partially cancelling their term life insurance cover.

iExtend has participated in numerous industry association conferences, in particular FAAA along with specialist groups such as Ensombl, RiskInfo and Padua. iExtend remains committed to its involvement in AFSL Professional Development Days and to the iExtend iExchange Forums, a national network of more than 100 like-minded risk advisers who connect and to advocate industry solutions to addressing current industry challenges.

“iExtend is proud of its achievements and the AFSL marks a new chapter of opportunity for the offer and solidifies our desire to work with financial advisers and their clients to ensure life insurance is seen as an asset rather than liability,” said Sarkis.

For more information or to interview iExtend’s CEO David Sarkis, please contact:

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Michael stood out with his extensive accounting and tax experience and brings considerable skills to iExtend having worked previously with companies ranging from start-ups to US listed multinationals.

Complemented by a strong legal background and technological acumen, Michael will help further accelerate iExtend’s growth and scaling plans.

Most recently Michael served as the Head of Financial Control and Head of Tax at Axi, and previously managed the tax function of Equifax Australia and New Zealand. He also has a wide experience working in professional services, having worked for both Deloitte and KPMG, in Australia as well as overseas.

Reporting to iExtend’s CEO, David Sarkis, Michael’s appointment reflects iExtend’s ongoing commitment to bringing a robust, innovative and process-driven offer to the market.

“We are thrilled to welcome Michael to iExtend as we continue on our growth trajectory and explore our licensing options with ASIC. This is an exciting time in our journey and we are confident we have put in place a strong offer which can help policyholders retain their valued life insurance policies.”

iExtend is gearing up for a busy 2024 following the announcement it will become licensed this year. Holding an Australian Financial Services Licence (AFSL) will substantially expand the growth opportunities for iExtend, both in terms of the services and support it can offer advisers, as well as cementing iExtend’s future in the industry.

“iExtend has been humbled by the support we have had from advisers since announcing our upcoming AFSL,” said Sarkis. “We see this support as a further endorsement of our offering, our business and our mission.”

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David Sarkis

iExtend has launched the iExchange Forums, a national assembly designed to bring together like-minded advisers from across Australia to provide an opportunity to connect and to advocate industry solutions to current industry challenges.

The iExchange Forums encapsulates how iExtend will continue to work with advisers, in a collaborative manner, to ensure the best outcome for policyholders. iExtend has hosted iExchange Forum launch events in Sydney, Brisbane, Melbourne and Perth and this week, will launch the Forum in Adelaide.

Already more than 40 licensees and privately owned businesses have attended these events, creating a foundation member group of over 80 risk advisers across Australia. The Forums have been well received by advisers who  have valued the opportunity to build their network, collaborate and discuss how insurance can be better viewed as an asset rather than a liability.

“It is great to have like-minded advisers in the one room who are positive about the future and yet bring deep experience with them,” said Don Trapnell, former Synchron Chairman and current Director, Llenpart Financial and Founding Member of iExchange Forum, Melbourne

“iExtend is bringing together advisers in forums that are educational, positive and social and where advisers can listen to each other,” said Nowak Financial Services Director and former AFA President Michael Nowak and Founding Member of iExchange Forum, Brisbane

“The iExtend Exchange Forums are a new, adviser-focussed way to catch up with fellow advisers who are seeing similar challenges to you and who can provide insights on how they are responding to them,” said Reece Keys, Financial Adviser, Solace Financial House Financial Adviser and Founding Member of iExchange Forum, Brisbane

To date, the national events have showcased CPD accredited presentations from Strategy Consultant and former Zurich/One Path Risk Strategy expert Mark Neil, iExtend CEO David Sarkis and iExtend Head of Distribution, Protip DasGupta.

According to iExtend CEO David Sarkis, advisers are looking to connect face-to-face, to compare stories and experiences and to leverage their great skill.

“The insurance operating environment is very complex and stressful right now with a number of issues hurting policyholders, and financial advisers are having to deal with this. The Forums provide a unique setting for them to come together and discuss new approaches and what is working.”

Over the coming months, iExtend will attend a number of industry events, PD days and Licensee days as it continues to inform and educate the advice market on its offer. iExtend is currently operating under a Corporate Authorised Representative licence while it awaits its Australian Financial Services Licence from the Australian Securities and Investments Commission.

iExtend’s Head of Distribution Protip DasGupta said advisers are key in assisting Australians make good choices about their life insurance, particularly when they are under pressure with health changes and financial pressures.

“Financial advisers are central to helping Australians manage and retain their life insurance policies. iExtend has been working closely with them to ensure they understand how iExtend works, and how our proposition can help the policyholders, advisers and insurers, overall enhancing the sustainability of the life insurance industry.”

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Mr Cassidy was the founder of AMP’s private capital business in 1993 where he managed investment funds across resources, infrastructure and manufacturing. In this role, he was involved in major public investments such as Optus as well as privatisations such Melbourne Airport and Victorian electricity generation and distribution.

In 2001 Mr Cassidy founded private equity firm The Sentient Group which manages capital for institutional investors such as endowments, family offices, pension funds, sovereign wealth funds and insurance companies in the USA, Europe and Middle East. In 2017, he retired from The Sentient Group in 2017 to establish Moss Ridge family office.

Mr Cassidy holds a degree in Geology and a first class honours degree in Chemistry from the University of Tasmania and a PhD in Coal Science from Monash University.

iExtend CEO David Sarkis commented, “We are delighted to have Peter join iExtend as Chairman and are fortunate to have someone of his experience and calibre to help guide us in the next stage of our growth. Peter joins us at a busy and pivotal moment where we have the opportunity to scale our business with the adviser support we have built and further develop our enterprise solutions to elevate our industry-leading offering for licensees.”

In November, iExtend announced it would be granted a new retail Australian Financial Services Licence (AFSL) by the Australian Securities and Investments Commission (ASIC). An AFSL provides clarity as to how iExtend can participate in the industry as well as providing further opportunities to educate and inform advisers about the offer.

It is expected 2024 will be a game changer year for iExtend as continues to build momentum and cement itself into the financial services industry.

“iExtend would like to thank former iExtend Chairman Rodney Payne for his tireless efforts and commitment to the business over the past three years,” said Mr Cassidy. “He helped the business mature from start-up phase and we wish him great success as he pursues new opportunities during the next stage of our growth.”

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David Sarkis

In anticipation of its AFSL, iExtend has obtained a Corporate Authorised Representative (CAR) arrangement for the interim which enables it to continue engaging with the industry while waiting for its Authorised Financial Services Licence (AFSL).

Securing the CAR arrangement is an important development in iExtend’s journey as it demonstrates the businesses commitment to maintain adviser engagement and conversations which are key  foundational pillars to the co-ownership offer.

A CAR enables iExtend to act as an agent of an AFS licensee and means it is authorised to provide specific financial services outlined in their agreement with the licensee. These services may include financial advice, investment management, insurance broking or dealing in financial products.

According to iExtend CEO David Sarkis, the CAR established with Ingenious Brokers Pty Ltd is the next step in iExtend’s proactive licensing journey.

“We have always been proactive in the market whether that be with advisers, insurers or regulators and this is no different in that we have sought out an arrangement that legitimately enables us to engage with the industry before we get our AFSL.”

iExtend provides an opportunity for policyholders to maintain some cover after they have determined to cancel, even if health conditions may impact their life expectancy. iExtend only considers policies where the policyholder has already committed to fully or partially cancelling their life insurance cover, and a financial adviser has determined this is in their best interest.

The AFSL will further strengthen iExtend’s offer to provide more Australians with the opportunity to extend the life of their existing life insurance policy when financial, health, lifestyle or other circumstances change, and follows proactive and pre-emptive consultation by iExtend with the Australian Securities and Investments Commission (ASIC) prior to its launch in 2022.

“iExtend was pleased to accept the certainty provided by this licensing process and I am proud of the way the business proactively worked with ASIC over the past two years to understand how a new and innovative offer such as iExtend fits into such a regulated market,” said Sarkis.

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Existing board members already include Geoff Lloyd, Peter Bobbin and Rodney Payne, and the addition of Goss brings further industry expertise to the role, as well as continued independence, strong guidance and more than a decade of recent experience with a number of the major insurers.

A former insurance executive, most recently Goss worked with MLC Life Insurance, where he was National Manager Debt Protection and Partnerships and a Regional manager, Bancassurance, Direct and Digital. Prior to this, he was Head of Adviser Distribution, Retail Advice at CommInsure where he was responsible for the businesses distribution strategy and managing the sales and support teams.

Goss was also Head of Insurance Retail Sales at ANZ Wealth and National Sales Manager, Life. Risk at Zurich Financial Services Australia.

According to iExtend CEO David Sarkis, the ability of iExtend to attract Board members of Goss’s calibre, demonstrates the integrity and value of iExtend’s proposition and its desire to bring the best people and opportunities to the table.

“We are delighted Kevin joins our Advisory Board adding further bench strength to our existing Advisory Board members who offer incredible industry insight and bring years of industry experience to the iExtend proposition and to understanding how it fits into a regulated market.”

iExtend launched last year and has been met with wide adviser support, offering them and their clients another option to the cancellation of life insurance policies.

“iExtend has a valuable role to play in ensuring the sustainability of life insurance, particularly in challenging market conditions such as now where the cost of living and rising premiums are making it harder for clients to view insurance as an asset,” said Sarkis.

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Lindsay brings an extensive range of skills to the role, with more than 15 years of life insurance experience spanning technical and managerial roles, including reinsurance and automation.

He joined iExtend from Pacific Life Re, where he was Director, Underwriting and Claims Automation, working with life insurers to help them optimise their digital underwriting and claims solutions to realise straight-through processing and operational efficiency gains.

In this role, Lindsay also supported the delivery of UnderwriteMe, Pacific Life Re’s underwriting proposition, which included developing and maintaining proprietary underwriting and claims algorithmic rule sets, product R&D, new technology uptake, and client support.

Before this, Lindsay was at MetLife, where he led and coached underwriters and administrators in delivering a high-quality underwriting value proposition. He has held senior underwriting positions at BT Financial Group, TAL Australia and Munich Re and is an Associate Fellow Certified Professional Life Insurance with ALUCA.

Reporting to iExtend’s Head of Risk, Ruth Keaney, Lindsay’s appointment reflects iExtend’s commitment to bringing an innovative and leading-edge offer to the market.

“We are thrilled to welcome Lindsay to the iExtend family. His appointment increases our expertise within our risk assessment team.”

Launched earlier this year, iExtend has been welcomed by the market, with advisers, licensees and insurance providers approaching the iExtend offer as another engagement tool with policyholders where they are looking to cancel their policies.

According to iExtend CEO David Sarkis, rising premiums and increases in the cost of living are motivating policyholders to initiate conversations with their financial advisers about the future of their policies.

“In the current market, the iExtend offer provides advisers with another option to present to their clients if they are looking to cancel their policy, one which could enable them to enter a co-owning agreement with us which will eliminate future premium payments from the proportion of the policy that was to be cancelled.”

iExtend has been engaging with the advice industry, attending conferences, Professional Development days and Industry Roundtables to discuss the future of the life insurance industry and how its offer fits into the market.

“The advice industry has responded to the strength of our offer as well as its attention to detail and commitment to delivery, including aspects around how we work with vulnerable individuals that are otherwise committed to cancelling their policies,” said Sarkis. “We are very excited to be growing our team and working collaboratively with the industry on solutions that we believe are good for policyholders, financial advisers and insurers.”

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Mark Stubbings

Financial Services Industry stalwart Mark Stubbings has been promoted to Head of Alliances at iExtend, a newly created role to facilitate Industry and Association collaboration and pioneer connection pathways for a unique life insurance option.

Mark is well-known and respected across the industry, previously working as iExtend’s Queensland (QLD) Distribution Manager. Given his work promoting the collaborative nature of iExtend across Licensees and Advice Practices, Mark’s role has expanded beyond state borders.

In July, Mark worked with a number of industry identities and organisations to run the inaugural joint FPA, AFA, SMSFA, MDRT and XY Adviser Roadshow, which toured Northern Queensland. This success of the Roadshow and two earlier combined events have led to a similar Roadshow being planned for Tasmania. Mark’s new role will see him facilitate other industry collaborations while continuing to build momentum for iExtend.

Mark has specialised in financial services across Australia and New Zealand, working in a number of Licensee, Financial Advice and Product Provider roles. He worked at Sunsuper for five years and 12 months at Aware Super, where he designed, launched and further developed their respective offers to the IFA market.

Mark is an accountant by profession and holds an MBA and a number of financial planning qualifications. He is also State Secretary for the AFA in QLD.

Commenting on his promotion, iExtend CEO David Sarkis noted, “Mark is an insurance professional and his capacity to engage and bring the industry together on key issues has no boundaries. We look forward to expanding on these strengths in his new role and building on the collaborative nature of our offering.”

iExtend was launched in March this year and allows policyholders to co-own a life policy with iExtend so they can retain a partial interest in the original policy and eliminate future premium payments on the co-owned policy that was to be cancelled. The purpose and vision for iExtend is to help Australians who have determined to cancel or reduce their Life insurance retain an interest on the co-owned portion at no extra cost.

“We take a collaborative approach with our offer and work with all the stakeholders in a life insurance policy, including the policyholder, the adviser and the insurer,” said Sarkis. “We believe our service and attention to detail create a winning experience for all three and one which extends the life of life insurance which otherwise would have been cancelled.”

To date, iExtend has attended the AIOFP, Synchron, NextGen and Futuro conferences. Later this month, iExtend will be attending the AFA National Conference in Queensland and the FPA Congress in Sydney in November.

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Effective immediately, Katherine brings more than a decade’s experience in specialist insurance marketing to iExtend, most recently from Zurich, where she set up the Customer Stream of Marketing, aligning the activity of both the Zurich and OnePath brands.

Prior to this, Katherine spent six years at ANZ as Marketing Leader, Retail insurance. She has also spent more than three years at TAL Australia, where she filled a number of roles across Marketing, Digital, Corporate Communications and Brand.

Katherine’s appointment caps off a busy four months for iExtend, which was launched in March to effectively extend the life of a life insurance policy by partnering with life insurance owners to take co-ownership of the life policy, paying ongoing premiums on the cover which the policyholder has determined to cancel or reduce.

Co-owning a life policy with iExtend means that policyholders retain a partial interest in the original policy and eliminate future premium payments on the co-owned agreement portion of the policy to be cancelled.

iExtend CEO David Sarkis said iExtend has been received well by the industry, who reflect on the perennial industry challenges such as premium increases, client retention and longevity.

“iExtend wants to lead through innovation and to provide policyholders, advisers and insurers with a valuable solution that benefits them all. Katherine’s appointment reflects our commitment to deliver to market a new and timely offer that may create a positive outcome.”

“The purpose and vision for iExtend is to help Australians who have determined to cancel or reduce their Life insurance retain an interest on the co-owned portion at no cost. Our approach is to do this in collaboration – with the policyholder, who bought the policy all those years ago as an act of prudence and kindness; with the adviser, who helped them navigate the tough choices, always looking out for their best interests and in collaboration with the insurer, who agreed always to be there – no matter what happens,” said Sarkis.

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