Product Showcase: Making group insurance count

Many financial advisers aspire to provide genuinely integrated advice, but finding ways to support more clients without increasing operational demands remains a challenge. As they re-evaluate where they can add the most value to their clients' finances beyond their existing services, they are turning to one of the hidden gems of holistic advice: group insurance.

A case for group insurance 

That opportunity has become more apparent as a decade of superannuation reforms has fundamentally changed how Australians access and manage insurance through super. Over the course of 10 years, millions of working Australians went from having automatic default cover through their super to having none at all, before fresh calls emerged to ensure fund members better understand their cover and how to make a claim when they need it.

The Actuaries Institute found in a 2025 study that, based on current rates of death and disability, around 30% of fund members will experience at least one insured event during their working lives and receive an insurance payment. Yet many Australians still have only a limited understanding of how insurance works.

The Council of Australian Life Insurers' life insurance sentiment tracker found that 70% of respondents with life insurance have a limited understanding of how it works, while 14% admitted they had never looked into it. Advisers can help bridge that gap, not just through awareness but through action. The same study found that 48% of Australians would look to a financial adviser for insurance advice if their circumstances changed.

A natural progression 

Kris Goodwin, director, growth & wealth distribution at North, says advisers are looking for ways to expand the number of clients they support without adding operational burden to their practice, and that's where group insurance comes to the fore.

ASFA's June 2025 figures show there were around 9.3 million lives covered by group superannuation arrangements, making it a significant feature of many Australians' finances, even if some members are unaware they have it.

"Accessible life insurance options can help advisers have insurance conversations with a broader segment of clients, including those who may not have traditionally engaged with individually underwritten insurance options," she says.

Advisers can also help untangle the legacy of multiple job changes and long-delayed financial decisions.

"A common challenge is that many clients hold multiple superannuation accounts, often because insurance has been retained in a separate fund over time. While those arrangements may have made sense at a particular point, they can also create additional complexity, administration requirements and potentially duplicated costs," Goodwin says.

The complexity surrounding insurance can itself discourage engagement. Based on the Actuaries Institute's findings, many Australians need guidance to understand the cover they hold, the claims they may be eligible to make, the premiums they are paying and how to navigate the claims process. Without the right support, some members risk missing out on benefits they may be entitled to receive.

"The opportunity for the industry is to make life insurance easier to access and easier to discuss," Goodwin says. "At the same time, where appropriate, advisers may have opportunities to consolidate a client's superannuation arrangements so both their wealth and insurance needs can be managed through North, supporting a more integrated client experience."

Bringing choice and flexibility 

This year, North launched North Protect, a new group insurance offering available through eligible North and MyNorth Super and Pension products.

"One of the strengths of North Protect is the flexibility it provides advisers through multiple pathways designed to cater for different client circumstances," Goodwin says.

For example, Standard Cover is available for new members joining MyNorth Super and Pension, while Tailored Cover and Insurance Transfer options are available for those requiring more customised arrangements.

"North Protect has been developed to help advisers support more clients with their life insurance needs, while keeping superannuation and insurance connected within the North ecosystem," she says.

Bringing insurance into the same conversation as superannuation and investments is a logical next step for advisers looking to deliver genuinely holistic advice.

"The key takeaway from the launch of North Protect is choice, flexibility and integration," Goodwin says.

Breaking the barriers 

Through the new offering, North is seeking to address some of the common barriers advisers often encounter when discussing insurance.

"The barriers advisers often talk about are complexity, affordability, administration and implementation effort. Insurance is incredibly important, but it can sometimes become harder to prioritise when advisers are balancing multiple client needs and managing practice capacity."

Practice capacity is partly an internal challenge, but it also reflects broader workforce trends. Peak advice body FAAA has noted that adviser numbers have fallen due to the retirement of baby boomer advisers, the lengthy education and training pathway for new entrants, and the exit of many advisers from the profession.

But for those who are thriving and committed to growth, conversations around group insurance couldn't be any more urgent. Millions of Australians remain underinsured at a time when economic uncertainty and mental health-related illnesses continue to rise.

In the 12 months to June this year, life insurers paid nearly $6 billion across more than 50,000 claims through group insurance. Those figures highlight that insurance within super is far from a benefit that sits unused. Claims are being paid every day, providing a financial lifeline when members and their families need it most.

Goodwin explains that the value of group insurance can be highlighted at the point of engagement, when advisers are already discussing their clients' superannuation and long before a claim event occurs.

This is especially true for prospective Gen Y clients. The FAAA's 2024 Consumer Research on the Value of Advice found that Gen Y respondents were more likely than older generations to value a holistic approach to financial planning.

"Rather than viewing superannuation and insurance as separate conversations, advisers can consider how these needs work together as part of a client's broader financial strategy."

Brought to you by North