Global Financial Crisis Hitting Home

AXA has released survey findings that provide a telling indication of the impact of the Global Financial Crisis on the attitude of Australians to insurance and savings.

AXA's 2009 Protection Report (conducted by Newspoll in May) found that 1 in 3 Australians felt it was likely they would suffer from serious financial problems in the future, compared to just 16% when the last Protection Report was published in 2007.

Many more Australians also believe they may lose their jobs - 37% of those surveyed believe they were likely or somewhat likely to suffer unemployment, compared to only 15% holding this view in 2007.

Falling confidence in financial and employment security has been matched by an increase in awareness of Australians of their insurance needs. Today, only 15% of Australians feel they are ‘very well insured', compared to 33% in 2007.

Referring to these findings, AXA General Manager Sales and Marketing, Adrian Emery, says it's not just our savings that have taken a hit during the economic crisis.

"2 years ago we had the most care-free outlook in the world but our seemingly indestructible attitude is now gone; the global economic crisis has hit at the core of the Australian psyche," said Mr Emery.

But while the number of Australians thinking they were very well insured has significantly reduced, only 7% of those surveyed said they had taken out additional life cover.

The survey also found:

• 13% of Australians are more concerned about their level of insurance but have not done anything about it.

• 45% of Australians believe they don't need additional insurance.

Commenting on these outcomes, Michael Rogers, General Manager Financial Protection at AXA said: "It is encouraging to see the shift in attitude; this is a positive step forward, but we have still got a long way to go. We see so many people suffer because they are not insured or they are under-insured. Insurance is something most of us don't want to think or talk about, but the fact is most of us don't have adequate levels of cover."

The above article has been sourced from riskinfo.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.