Aussies Reckon 'She'll Be Right'

Australians' "she'll be right, mate" attitude to the risks of life means many fail to insure themselves properly, an insurance company says.

Unlike some more pessimistic nations, Australians feel less threatened by risks such as serious illness, accidents and disasters, says a report by insurance company AXA.

It says Australians know they're taking life risks but don't like thinking about them, and that many are aware their level of insurance coverage is either inadequate or nonexistent.

AXA said it found 64 per cent of Australians were failing to adequately insure themselves.

On average, Australians were under-insured by $112,000.

Clinical psychologist John Cheetham says the findings should challenge Australians' long-held attitude of "she'll be right mate".

He said those aged under 35, in particular, were blissfully ignorant about hard economic times.

"Much about Australia's carefree attitude to life is admirable, but when it starts to affect our families and our lifestyle, it can develop into something that looks more irresponsible and financially hazardous," he said.

"Under-insurance may well challenge the psychological health and wellbeing of many Australians.

"Most of us think about insuring the major breadwinner, but if something was to happen to the primary carer of the home, the financial consequences are often dire."

The AXA reports compares Australians' attitude to risks and insurance to people in Belgium, France, Germany, Hong Kong, Italy, Japan, Spain, Switzerland, the United Kingdom and the United States.

It says Australians are the least concerned about what serious illness, accidents and disasters might happen to them in eight out of 10 categories.

"We are taking on more and more debt in Australia with our mortgages, cars and credit cards," said AXA general manager financial protection, Michael Rogers.

"Serious accidents and illnesses do occur, and it's important for Australians to think about how they would protect both themselves and their families if they couldn't repay their debts."

However, AXA admitted under-insurance globally was a concern, and Australia was the most adequately insured of the 11 developed countries in the survey.

An AXA spokesman said 36 per cent of Australians had life insurance, with the US and Britain the next best of the 11 countries.

"We still have two in three Australians without life insurance though," said the spokesman, Michael Zappone.

The above article has been sourced from The Age and provided by Australian Associated Press.

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