In November, I was in Sydney at a conference of life industry people from around the world sharing ideas and issues.
There were common issues - sceptical consumers, frustration with ivory tower regulators and politicians who start radical reform to deal with the huge societal issue of too many of us living too long but never quite finish the job.With NEST on our horizon there is much to learn from the Australian environment and their mature compulsory savings scheme. I don't call it a compulsory pension scheme as they don't have to annuitise and there is still a means tested state pension that distorts behaviour at retirement. Of most interest though is the emergence of large quasi mutual "Super" funds. Started by the unions they have become the structure by which the majority of people create some long term savings and access a starter pack of life and disability cover. They have become very good at getting best value supply from shareholder-owned insurers. Mutuals for the 21 st Century anyone ?
Despite everyone having a personal fund and default life and disability cover, all the Aussie contributors talked about chronic under- insurance. But they also talked about 15 - 20 % pa market growth in the middle and lower socio economic segments ! The combination of compulsory foundation cover and real spending on communications and advertising means there is a level of awareness that put us to shame in the UK by comparison.
All of the marketing seems to have a common theme - we Aussies are all decent folk who, rich or poor, strive to be Proud Providers for our families and making sure we are insured for death and inability to earn because of illness or accident is a fundamental part of that. Delivered with characteristically blunt humour and that slightly aggressive "Look" prefix that they use in answer to any question, the key message gets across. This TV ad from InsuranceLine sums it up
Perhaps in the UK we need to up our communications spend to reach the middle classes and aspiring working classes. I'd contend we are just as focussed on our families and their security in Basildon and Dartford as they are in Manly and Wooloongong. Let's drop the fey euphemisms - "if the worst should happen" - and tell it as it is. You need death and serious illness and accident cover to truly be a proud provider.
