CALI Advocates for Reforms to Bridge Financial Advice Gap for Young Australians
CALI Advocates for Reforms to Bridge Financial Advice Gap for Young Australians
0
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
In a notable victory, Brisbane-based IVAA Claims emerged as the winner of the esteemed Beyond the Buzzwords pitch contest. The company, which specializes in jewellery validation assessments and settlement guidance for contents claims, impressed the judges with its innovative approach to tackling insurance fraud. - read more
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. - read more
The process of obtaining Personal Medical Attendant Reports (PMARs) has been a significant administrative issue for Australian life insurers. General Practitioners (GPs) often face an overwhelming amount of paperwork, dedicating nearly a full workday each week to administrative tasks. PMARs, essential for assessing applicants’ health for life insurance, have traditionally been cumbersome and time-consuming, with many GPs delaying their completion. However, the development of digital solutions is set to transform this process and improve efficiency drastically. - read more
Starting on October 1, a comprehensive review of the voluntary Life Insurance Code of Practice will commence, with a focus on assessing the effectiveness of revisions made to its regulations and standards in 2023. The Council of Australian Life Insurers (CALI) has appointed Peter Kell to lead this independent review and deliver the final report by June 30 next year. - read more
The Australian Financial Complaints Authority (AFCA) has upheld PetSure's decision to cap their payout at $2,600 for a dog's medical costs, settling a dispute over pet insurance claims. The dog's accidental injury involved a ruptured cranial cruciate ligament, requiring approximately $6,500 in veterinary care, including surgery. Although the owners' claim was initially accepted, it was limited under the policy's annual sublimit for cruciate ligament conditions. - read more
Insurance plays a crucial role in safeguarding our financial future. It serves as a safety net, ensuring that we can manage unexpected events without severely impacting our financial stability. For Australian adults, having the right types of insurance coverage is essential for peace of mind and financial security. - read more
Insurance is a crucial component of financial planning. While many Australians understand the importance of life insurance, there's another vital type of coverage that often gets overlooked: income protection insurance. - read more
Financial security is pivotal for anyone striving to meet their life goals, be it owning a home, educating children, or ensuring a comfortable retirement. In Australia, where uncertainties can disrupt our best laid-out financial plans, having a safety net in place is essential. Income insurance offers just that—protection against the unforeseen events that could impact your income earning abilities. - read more
When the unexpected strikes, such as an illness or injury hindering our ability to earn a living, the financial repercussions can be devastating. This is where income protection insurance becomes a pivotal part of our financial safety net, ensuring a stream of income during challenging times. - read more
Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury. It aims to replace a portion of your income during such times, ensuring you can maintain your lifestyle and meet financial obligations. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
