Australian Resilience Index identifies insurance as key driver of stability

A new study titled the Australian Resilience Index, developed by Zurich in collaboration with Mandala Partners, RedBridge Group, and Accent Research, reveals that more than one in five Australians face significant vulnerability. The research identifies financial insecurity as the primary factor affecting an individual's ability to recover from shocks.

Insurance coverage was highlighted as a critical component of resilience. Communities with insurance penetration of at least 50% were found to be five times more likely to demonstrate higher financial resilience and four times more likely to record higher health resilience.

The index assessed nearly 2,500 local areas across four dimensions: financial, health, social, and environmental resilience. Cottesloe in Western Australia was identified as the most resilient community, while the Tiwi Islands in the Northern Territory recorded the lowest overall resilience. The study also noted that financial resilience increases with age and is generally stronger among men.