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Australia's Life Insurance Coverage Falls Short of Global Standards

Survey Highlights Need for Increased Awareness and Coverage

Australia's Life Insurance Coverage Falls Short of Global Standards?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent findings from a survey conducted by Zurich and the University of Oxford reveal that Australia has one of the lowest life insurance penetration rates globally.
The study indicates that only 27% of Australians have income protection insurance, and 25% possess life insurance coverage.
These figures are notably lower than the global averages of 33% for income protection and 32% for life insurance.

In comparison, countries like Malaysia and Hong Kong report higher penetration rates, with Malaysia at 63% for income protection and Hong Kong at 48% for life insurance. This disparity underscores a significant protection gap within the Australian market.

Tim Bailey, CEO of Zurich Australia Life & Investments, emphasised the concern, stating that Australians' optimism about their health and the likelihood of death or disablement is not matched by actual probabilities. This mismatch makes the low levels of insurance protection even more problematic.

For middle to upper-middle income earners, professionals, and self-employed individuals, this data serves as a prompt to evaluate personal insurance needs. Ensuring adequate coverage is crucial to safeguard financial stability in the event of unforeseen circumstances.

To address this protection gap, individuals are encouraged to consult with financial advisers to assess their insurance requirements and explore suitable income protection and life insurance options.

Published:Tuesday, 24th Mar 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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