A recent investigation by CHOICE reported that some private health insurance premiums will rise by as much as 25% in April. However, despite this sharp increase, many Australians remain committed to their cover. This could suggest a fundamental shift in the national psyche of a country long defined by its "she'll be right mate" approach to risk.
Australia's cultural identity has long been intertwined with a certain fatalism about risk - a laid back confidence that things will work out without excessive planning or protection. This attitude, embodied in the national catchphrase "she'll be right," has historically made this country a challenging market for some insurers, particularly in voluntary lines, including health and life, where uptake has traditionally lagged behind comparable developed nations.
However, a survey by Lonergan Research of 1,000 private health insurance policyholders suggests something fundamental could be changing. The research found that while nine in 10 Australians worried about rising premiums, nearly a third remained firmly committed to keeping their insurance, regardless of price increases. Three in four Australians said they value their private health insurance more today than they did five years ago, with many willing to sacrifice their spending on streaming services or home upgrades, rather than let their cover lapse.
For insurers and brokers across all lines of business, this apparent further evolution away from Australia's traditionally relaxed attitude toward protection to a more deliberate, risk-conscious mindset could represent a significant cultural shift in the industry's favour.
"More Australians are thinking carefully about their health and the real cost of care," said Rebecca Harwood (pictured), Australian Unity's group executive of health insurance. "Even with cost-of-living pressures, many people tell us private health insurance gives them a sense of stability and choice at a time when everything else feels uncertain."
Read next: Health premiums set to surge up to 25%
The shift from passive acceptance to active protection could be more than just changing consumer preferences and signal a maturing relationship with risk that could reshape insurance markets across commercial and personal lines.
"People are thinking more seriously about the realities of getting care and the costs involved," said Harwood. "That's why nearly a third tell us they're committed to keeping their cover even when money is tight. It reflects a growing focus on protecting their health and their family's wellbeing."
For commercial lines brokers, this could translate into more receptive conversations with SME owners about business interruption coverage, cyber insurance, and professional indemnity - products that have historically been difficult sells to Australian business owners who viewed such risks as unlikely or manageable without formal protection.
The research showing Australians prioritizing insurance over discretionary spending suggests a fundamental reordering of financial priorities. If this extends beyond health to property, liability and income protection, insurers could see sustained demand growth even during premium increases - provided they can clearly articulate value and demonstrate tangible benefits.
For life and income protection insurers, the shift is potentially transformative. These products have long struggled with low penetration rates in Australia compared to other developed markets, partly due to cultural attitudes that such protection was unnecessary or overly pessimistic. A population increasingly focused on "protecting their family's wellbeing" could represent untapped market potential.
Despite sharp premiums increases, the desire, according to Harwood’s reading of the research, for "choice, control and timely access" could manifest as preference for broader coverage terms, lower excesses and more responsive claims handling across all insurance lines.
For brokers, this evolution presents both opportunity and responsibility. Clients who are genuinely more risk-aware and protection-focused represent ideal prospects for consultative broking - businesses and individuals willing to invest time understanding their exposures and willing to pay for appropriate coverage.
However, the research also reveals a critical vulnerability. While commitment to insurance is rising, fewer than half of health insurance policyholders (43%) say they fully understand what their cover includes. This understanding gap exists even in health insurance, where consumers have direct, personal engagement with their policies and regular touchpoints through medical services.
In commercial lines where policy wordings are more complex, coverage triggers less intuitive and claims events less frequent, the challenge of ensuring genuine client comprehension can become exponentially greater. Brokers who can bridge this gap, translating increased risk awareness into informed insurance decisions, will be best positioned to capitalize on any cultural shift while protecting client relationships from the inevitable disappointment of coverage gaps discovered at claim time.
Harwood's own journey with private health insurance mirrors the broader cultural situation. In a recent op-ed, she described her teenage perspective: "Like many Australians, it wasn't something I thought too much about,” she said. “I figured it was something you 'probably should have', a safety net for the big, unexpected moments."
A passive product there for an unlikely disaster. Harwood’s attitude has completely changed after more than 20 years in the industry and the research suggests many are on the same pathway.
This evolution from viewing insurance as a grudge purchase to seeing it as an active tool for managing uncertainty and maintaining control could fundamentally alter how Australians engage with all forms of insurance.
What could be emerging is a more mature insurance market, where Australians view protection not through the lens of "she'll be right" optimism but as a deliberate investment in stability, choice and control. If this cultural shift extends beyond health insurance to other personal and general insurance lines, it could represent a significant insurance evolution.
