In the ever-evolving landscape of Australia’s economy and healthcare system, an unexpected hero is emerging to bolster the nation’s safety net: the life insurance industry. On the 2nd of April, 2025, Kent Griffin, the CEO and Managing Director of Acenda, and Co-Chair of the Council of Australian Life Insurers (CALI), delivered a compelling speech at the CALI conference in Sydney, highlighting the pivotal role life insurance plays in addressing some of Australia’s most pressing challenges.
As our society grapples with the realities of an ageing population and the escalating costs of healthcare, the life insurance sector stands as a beacon of stability and support. Griffin’s address to industry leaders underscored the unique opportunity for life insurance to construct a new vision that not only meets the current needs but also anticipates the future demands of Australians.
The life insurance industry, according to Griffin, is at a crossroads, shaped by regulatory changes, demographic shifts, and economic uncertainties. Yet, amidst these changes, the industry’s commitment to providing Australians with financial security remains steadfast. Access to affordable, quality advice is more critical than ever, as it equips individuals to navigate their financial futures with confidence.
However, a gap exists between those seeking financial advice and those actually receiving it. CALI’s latest sentiment tracker indicates that while a third of working Australians considered seeking financial advice in the past three months, a mere seven per cent followed through. This disparity highlights the urgent need for accessible and affordable financial guidance, particularly in the realm of life insurance.
Life insurance has been a cornerstone of Australia’s safety net since the gold rush era, offering peace of mind during life’s most challenging moments and reducing the burden on social welfare and disability schemes. Griffin pointed out that life insurance claims provide over $11 billion to approximately 85,000 Australians each year, underscoring the industry’s trustworthiness and the value customers place on the security it provides.
The call to action is clear: the life insurance industry must continue to collaborate and embrace a comprehensive reform agenda to ensure that coverage is not only more accessible but also tailored to the diverse needs of Australians. Griffin praised the Government’s latest financial advice reforms as a positive step forward but emphasised that there is still room for improvement.
The Government’s commitment to modernising the best interest duty and creating a new class of advisers is a testament to the progress being made. These reforms, combined with the draft legislation soon to be introduced to Parliament, signal a brighter future for the industry and its customers.
To maintain relevance and trust, the life insurance industry must evolve. This evolution involves simplifying products, enhancing transparency, ensuring ethical and customer-centric advice and interactions, and leveraging data and technology to improve the customer experience.
Affordable and accessible life insurance does more than just alleviate public service costs; it empowers Australians to make informed choices and take risks with confidence. By fostering an environment of growth, stability, and financial security, the life insurance industry can support generations of Australians to come.
As the life insurance industry continues to evolve and play a crucial role in Australia’s financial security, it’s clear that significant changes are underway. The challenges, opportunities, and reforms in the sector are shaping the future for both providers and consumers.
What impact do you think these changes will have on Australians moving forward? Do you believe that accessibility to financial advice is improving? Do you feel more secure knowing that life insurance is part of Australia’s safety net? Join the conversation below and let us know how life insurance has played a role in your life.
Also read: Health groups demand urgent ban on genetic discrimination in life insurance
