I can’t help think about it every time I hear someone in the life insurance world utter the phrase “under-insurance”.

Now don’t get me wrong, under-insurance is a serious issue and one that needs considerable thought.

However, if we as an industry want to engage with consumers and law-makers on the topic let’s find a new name.

At the moment the whole issue appears, to the public anyway, as being just one industry group trying to talk up their books and sell more life insurance policies.

Framed in that perspective there is little chance the issue will get serious traction.

Oddly enough the insurance world has had this issue before. For years people like the Health Funds Association has argued for tax breaks on health insurance. The, quite logical argument, being that if more people bought health cover and used the private sector then some pressure would be taken off the over-burdened public health system.

Unfortunately this campaign has never gained traction with the politicians, even though it make sense.The life insurance sector should take note of what’s happened here and analyse why the campaign hasn’t worked, otherwise they risk the same thing happening with “under-insurance”.

The other issue around life insurance is how it is sold. I’ve spoken with lots of people about this and the general view is that the areas where this is growth is in the direct, online market and with banks.

The former is still a small part of overall sales but is growing, particularly as more and more companies enter the market.

It’s hard to get numbers on bank-initiated sales, but the view is these have grown.

The third, and largest, part of the distribution equation is advisers. I have no doubt the large majority of advisers are doing a good job here. But in this under-insurance discussion the issue of how this channel grows and churn will come under the spotlight.

One thing which is welcomed is David Whyte's zeal to step into the debate and really try to drive it along. He should be congratulated for this initiative and supported.

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