Member Benefits
Learn more about the range of benefits available to AIA Health Insurance members.
{{title}}
{{label}}Melbourne, Australia, 03 April 2018
Many Australians place greater emphasis on home insurance than health or life insurance, according to a comprehensive report on the insurance market by life insurer AIA Australia.
This insight comes from AIA Australia’s latest tracking study (conducted by the independent research firm Nature, in December 2017) of a representative sample of 1,000 Australians aged over 18. The research sample covered a diverse range of Australians across all age groups, location, income, employment status and household structures. The gender split was 50:50.
The report shows that although health and life insurance are seen by life insurance holders as being a “primary” insurance product, they don’t rank them as high a priority as house insurance. The figures show that house insurance tops the list with 26% ranking it as the most important, followed by health at 22% and life at 20%. Car insurance comes in fourth at 13%.
In the “secondary” category are income and disability insurance, which are ranked 9% and 5%, respectively. Crisis, funeral and business expenses insurance are characterised as “tertiary” insurance, ranking at 2%, 1%, and 2%, respectively.
AIA Australia and New Zealand Chief Executive Officer Damien Mu says the figures are an important reminder to the industry that more needs to be done to address negative perceptions that still surround private health and life insurance.
“AIA Australia does regular research to identify people’s needs so we can serve them even better. When you consider that even those people who do hold a life insurance policy rank their house insurance as a higher priority than health or life insurance, which is essentially about protecting their family, then the industry still has some questions to answer.”
Mu says the report shows that 2 in 5 (39%) Australians have either a “slightly negative” or “very negative” view of life insurance (this negative perception decreases slightly to 26% amongst policy holders), another 36% are neutral, and only 14% are “very positive” or “slightly positive”.
“The fact that the number of people with policies are less inclined to have a “slightly negative” or “very negative” view about life insurance shows the industry is improving in how it relates to customers. But there is much more we need to do to earn, and in some cases rebuild, people’s trust in the industry.”
He adds that it’s important to note that the industry is addressing these issues via a range of measures, including improved communications with customers, better education of the market about the benefits of life and private health insurance, and greater flexibility and speed in how it responds to claims.
“We understand that the industry needs to be seen as competent and reliable, as well as acting with integrity and humanity. To achieve this goal, we must be affordable, flexible and reliable,” Mu says.
Contact:
Ingrid Nienaber
AIA Australia
T: +613 9009 4143
E: Ingrid.Nienaber@aia.com
About AIA Australia
AIA Australia Limited is an independent life insurance specialist with over 45 years of experience building real and sustainable partnerships. AIA Australia offers a range of products that protect and enhance the lives of more than 3.3 million Australians and is widely recognised as a market leader in product innovation and development.
AIA Australia is the country’s largest group life insurer by market share and works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. In addition, AIA Australia is the fastest growing provider of retail life insurance products sold through financial advisers. AIA Australia also works with a network of affinity partners that distribute life insurance products. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners.
In 2014, AIA Australia introduced ‘Vitality’ – the world’s leading scientifically-backed health and wellness program, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.
In 2017, AIA Australia launched myOwn, a new brand created to bring together health and life insurance with the AIA Vitality wellbeing program to help its members live longer, healthier, happier lives. myOwn is a joint initiative of AIA Australia, not for profit health fund GMHBA and South African financial services provider Discovery.
About Nature
Nature is a strategic insights-based consultancy with a track record of driving business results for clients. In its 12 years of business, Nature has developed a reputation for providing clients the clarity they need to embark on business and marketing decisions with confidence. Whilst Nature conducts virtually all types of research, the company is particularly well known for quantitative capabilities.