How insurance in super supports financial confidence

At last month’s ASFA Spotlight on Insurance conference, I joined Aware Super's Dean Kambouroglou and independent consultant Jenni Baxter on a panel chaired by CALI CEO Christine Cupitt to explore a key challenge in group insurance: the gap between members knowing they have cover and truly understanding it. 

Awareness is just the beginning

We spend a lot of time in this industry talking about claims – and rightly so. But there's another benefit of insurance we don't discuss nearly enough: the peace of mind that comes from knowing you're protected.  

TAL's latest research – based on a quantitative survey of 2,000 working-age Australians – confirms that awareness of insurance in super has grown significantly, with around three-quarters of members knowing their insurance status (default cover or adjusted cover in super, external cover or no insurance). But when we peel back the layers, a more nuanced picture emerges about financial confidence. 

Our research indicates that members who don't know if they have insurance report just 18% financial confidence – that is, the sense that they and their family could manage if they were derailed by illness, injury or death. This confidence rises significantly among members with default cover, and is highest among members who have adjusted their cover to suit their circumstances, at 77%.  

The industry's collective challenge has shifted. It's no longer just about coverage or awareness. It's about helping members genuinely understand their insurance needs and how their cover works.

The financial literacy challenge

During the panel session, Jenni shared insights into why the understanding gap persists. When financial literacy has historically been measured using three standard questions around compound interest, inflation and risk diversification, the results are confronting. A third of Australian men can't answer these questions correctly – and for women, it’s more than half.¹  

Financial literacy doesn't just help people make better decisions about money; it reduces vulnerability to fraud, supports financial independence, and can even help people recognise and exit situations of financial abuse. Funds can play a role by communicating about insurance in ways members already think about money – debt, savings, protecting earning capacity – rather than insurance-specific terminology that may not resonate. 

"Super funds want to talk to their members, and members actually want to hear from you," Jenni said. "To be a trusted financial institution today isn't easy, and you've got that trust. It comes down to education and keeping it really simple." 

Making it easy for members

Default insurance provides an essential safety net for many, but it’s not a tailored solution. Members who assume default is comprehensive without checking may be in for a shock when they need it most. 

Dean noted that fear of making the wrong decision about adjusting their cover is a real barrier that can drive inaction. Aware Super's response has been to invest in its digital capabilities, which helps present insurance to members in accessible ways, while also helping them understand the outcomes of cover changes quickly and easily.  

"We're seeing about 67% of all insurance applications come out as straight-through decisions," Dean said. “This gives members peace of mind when they apply that they’ll get an answer straight away." 

Reframing insurance as a retention strategy

Historically, insurance engagement has been seen as a cause of members exiting the fund. Reframing the value of insurance among internal teams can pave the way for integrating insurance into broader member conversations about health, wellbeing and retirement planning.  

"Insurance isn't just something that matters at claim time,” Dean said. “It's about helping members continue to contribute and stay with the fund by building confidence and trust in the products and services we offer." 

Dean explained how Aware Super has responded to the specific needs of its predominantly female membership. The fund’s premium waiver feature for members on parental leave, launched in 2025, saw around 650 successful applications in its first months, collectively saving members around $250,000 in annual premiums.  

Targeted health campaigns have also landed well. Aware’s webinar series on menopause support attracted strong member engagement, creating a natural opening for broader insurance conversations. 

Closing the education gap

When we polled the audience on what single intervention would most help to improve member confidence, financial literacy and education came out on top.  

The demand for engagement is clearly there: on average, TAL’s insurance calculators are accessed more than 10,000 times a month.² And when funds don't step into the guidance space, members turn to Google, social media, friends and family – or increasingly, AI.  

Members – particularly younger ones – respond to different channels and communication styles. But as Jenni pointed out, the infrastructure to create those journeys needs to be in place first.  

"Anyone under the age of 35 is a social media native – we can’t just send them an email once a year about insurance,” she said.  

The opportunity for funds is clear: build the digital pathways and guidance capabilities to meet members where they are, champion insurance as a member-value conversation, and use the trust that’s already earned to help members gain financial confidence.  

Stay tuned for TAL’s Making Insurance Matter whitepaper, which will be available to download later this month.  

¹  Melbourne Institute of Applied Economic and Social Research, Household, Income and Labour Dynamics in Australia (HILDA) Survey, 2016–2020.

²  Adobe Analytics usage statistics for TAL premium and needs calculators, year ending March 2026.