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'Apathy just one of the obstacles' to getting Australians insured

Fuseworks Media
Fuseworks Media

Apathy, the complexity of insurance and a "she’ll be right" mentality are the major reasons Australians are underinsured, says independent community insurance and risk network Know Risk following the release of the "Apathy to Action" report by the Financial Services Council (FSC) today.

The FSC attributes underinsurance in Australia to a lack of motivation among Australians to protect themselves from risk, as opposed to people not understanding risks such as premature death, disability or other tragedies.

"Apathy is certainly partly to blame for the enormous problem of underinsurance in Australia, but there’s also the view that getting insurance is boring and confusing. Added to the ‘she’ll be right’ mentality and we can see why people are underinsured," said Know Risk spokesperson, Thomas Wills.

"The reality is that there are so many kind of insurance and so many risks that people feel overwhelmed to the point of inaction. There is also the misconception that because we live in a country with a social welfare network, you’ll always be covered by someone and this is just not the case."

Launched in 2013, the Know Risk Network empowers Australians to address non-insurable and insurable risks by enabling them to:

1. find out the risks they face based on their demographics and lifestyles or the particulars of their business through the My Risk online checklist

2. get informed and take action to manage the non-financial risks in their lives through the Know Risk website, featuring up-to-date risk warnings, articles, videos and checklists

3. store insurance policies, take photo inventories of possessions and receipts and set reminders to renew policies with the Insurance Tracker phone app.

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