CALI Advocates for Reforms to Bridge Financial Advice Gap for Young Australians
CALI Advocates for Reforms to Bridge Financial Advice Gap for Young Australians
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
Share this news item:
| Rising Group Premiums Pose Challenges for Australian Life Insurance 28 Aug 2025: Paige Estritori Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more |
| Concerns Arise Over Construction Code Pause Amid Housing Push 28 Aug 2025: Paige Estritori The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector. Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia. This move comes in response to challenges in the approval process, which often delays construction. - read more |
| RACQ Insurance Ordered to Increase Payout After Claim Handling Flaws 27 Aug 2025: Paige Estritori RACQ Insurance has been instructed to bolster a payout to a customer following a ruling by the Australian Financial Complaints Authority (AFCA). The dispute arose after the insurer's handling of a house fire claim lodged by a woman in October 2023 was found lacking. The fire, initiated by scented candles, resulted in significant fire and smoke damage to her home. - read more |
| ASIC Review Puts Life Insurance Sector Under Scrutiny 26 Aug 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has spotlighted significant shortcomings in the direct sale of life insurance products, urging the industry to reassess its sales practices. The recent review unearthed ongoing issues with remuneration structures, indicating that some insurers still link commissions to sales targets, potentially fostering aggressive sales tactics. The study further revealed a troubling rise in claims disputes, with reported cases more than doubling since 2018, raising concerns about the transparency and trustworthiness of these policies. - read more |
| Ombudsman Sides with Insurer on Imposed Excess Dispute 25 Aug 2025: Paige Estritori A recent ruling by the Australian Financial Complaints Authority (AFCA) has upheld an insurer's decision to impose an additional $2000 excess on a property policy, following a dispute raised by a policyholder over claims history impacts. - read more |
| A Millennial's Guide to Life Insurance For many millennials, navigating the complexities of personal finance and future planning can feel like a bewildering journey. Among these financial responsibilities, life insurance emerges as a paramount consideration. More than just a safety net, life insurance can be the cornerstone of a sound financial strategy, providing peace of mind for both the policyholder and their loved ones. - read more
|
| Tax Deductions and Income Protection: Maximizing Your Benefits When life throws unexpected health challenges your way, having a solid plan to protect your income is crucial. Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury, allowing you to focus on recovery without the added stress of financial burden. - read more
|
| Tips and Tricks for Fitting Insurance Premiums into Your Monthly Budget Understanding the significance of insurance in managing your finances is crucial. It acts as a safeguard, providing a buffer against unexpected losses or damage to your most valuable possessions. However, the costs associated with this necessary protection can be challenging to manage, especially when it comes to fitting insurance premiums into a monthly budget. - read more
|
| The Role of Life Insurance in Your Overall Financial Strategy Financial planning plays a pivotal role in managing your economic resources effectively. By assessing your income, expenses, and goals, you can create a plan that helps achieve financial security. A comprehensive financial plan covers saving, investing, budgeting, and managing liabilities to secure your future. - read more
|
| The Ultimate Guide to Understanding Life Insurance in Australia Life insurance is a contract between an individual and an insurance company. The insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. - read more
|
A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or flood.