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Who are Australia’s risk takers when it comes to insurance?

5 min read
2 Feb 2016

Purchasing insurance can be about having a safety net in times of financial loss. Whether that’s a car being stolen, becoming ill, damage to your property, or being unable to work and pay the mortgage. So what insurance policies are people more likely to hold? We take a look using audience profiling – so you can see where you fit in with the data.

Australia’s risk takers

Insurance is all about minimising risk, so we start our search by looking at Australia’s risk takers. According to the data, even where you live indicates whether you might take a few more risks here and there.

  • Anyone living in capital cities is slightly more likely to be comfortable taking risks than those from rural areas.
  • Out of all areas surveyed, Tasmanians are least likely to take risks
  • Those in Alice Springs are the most likely to take risks.

Where sex is concerned, men are slightly more likely to believe in taking risks then women. On the age front, the younger you are, the more likely you’ll be to take risks.

  • An 18-24 year old is almost 4 times more likely to believe in taking risks than someone aged 65+.

When it comes to insurance, the mix becomes a little more complicated, so let’s break it down and see who is more likely to have each insurance type, and then add our risk filter to see if this changes the picture.

When splitting insurance types per gender, women are slightly more likely to have hospital, extras and home insurance, whereas men are more likely to hold life insurance and total permanent disability (TPD). Could this point to women being more likely to take care of themselves when it comes to health, and men being more concerned with having a financial payout should an event render them unable to work?

Interestingly, both men and women are equally likely to have car insurance.

Age splits the deck in insurance terms

  • 18-24 year olds aren’t likely to hold any insurance in any category.
  • 25-34 year olds have a 50% likelihood of holding most insurance types, but are unlikely to have life or TPD cover.
  • Those in the 35-49 age bracket, are likely to have hospital, extras, vehicle and home insurance, but are extremely likely to hold life and TPD insurance.
  • A 35-49 year old is over twice as likely to have TPD cover as a 25-34 year old.
  • In the 50-64 age bracket the insurance portfolio remains largely unchanged, though at this age TPD cover is less likely than in the late 30’s and 40’s.

  • When reaching 65+ the rate of TPD cover drops significantly, likely because this is retirement age so there is no longer a work related income to protect. This age bracket has also dropped their life insurance, and is slightly less likely to have health insurance than in previous years. Other insurance types remain at average levels.

Other factors that affect insurance policies held

  • Those in capital cities are twice as likely to hold any insurance type compared with those in rural areas.
  • Men are slightly less likely to hold any type of health insurance, but marginally more likely to hold life insurance products.
  • Married or de facto partners are almost twice as likely to hold health insurance than a single person.
  • A single person the over three times less likely to hold TDP insurance than a couple.
  • Those who own their own home or are paying off a mortgage are twice as likely to have all types of health insurance.
  • A person that sometimes buys the groceries is twice as likely to have TPD cover than someone who never does.
  • People with children in all age groups are likely to have home insurance, but levels increase as children get older, the same trend is seen in life insurance policies.
  • Managers are most likely to hold health and life insurance, farm workers are the least likely.

Which insurance type are you most likely to hold?

  • 18-24: Vehicle cover
  • 25-34: Vehicle and health cover

Related: What are the secrets to a long and healthy life?

  • 35-49: TPD
  • 50-64: Life insurance
  • 65+: Home insurance

Which insurance type are you least likely to hold?

  • 18-24: Home and TPD
  • 25-34: Home insurance
  • 35-49: Hospital cover
  • 50-64: Vehicle cover
  • 65+: TPD

So we’re more likely to take risks when younger, and less likely to hold any insurance products. Of course there are other reasons why young people may have fewer insurance products; like not yet owning a house, having dependents and a stable income to protect.

According to the data, the riskiest among us are slightly more likely to have no health insurance or life insurance, but more likely to hold TPD. Perhaps those who believe in takings risks are aware that their behavior may get them into sticky spots from time to time, so want to protect their income.

When it comes to car insurance, the risk takers are less likely to have full comprehensive, but more likely to hold third party: Additionally risk takers are less likely to hold any vehicle insurance.

Ultimately purchasing an insurance product is a personal decision that hinges on many aspects of life, though there are certainly trends in the data.

Let us know if you fit into any of these categories, and if you think risk takers really do hold less insurance on our Facebook page.

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