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Study shows Australians taking underinsurance risks

29 July 2011 - 6:30pm

A report by Swiss Re of 13,800 people between the ages of 20 and 40 showed that only 47 per cent of respondents believe they are sufficiently covered by adequate health insurance.

67 per cent of those surveyed state that their monthly out-of-pocket costs are a major concern.

Furthermore, 40 per cent believe that their family would be at serious financial disadvantage in the event of developing a serious illness.

Swiss Re surveyed people across Australia and 11 Asia-Pacific regions, highlighting the underinsurance problems in generations X and Y.

Australians are the third-highest risk takers when it comes to personal insurance.

Using a measurement system to gauge consumer behaviour towards health, finance, career and lifestyle, Australia ranks below Japan and Hong Kong for regions most likely to take on personal risk by being underinsured.

On the positive side, the study also showed that a high percentage of those surveyed could actually afford health insurance once they had compared their budget to the market price.

This highlights the fact that education about health insurance is generally poor and all it could take is a chat with an insurance broker to relieve misconceptions about the cost of private health cover.