Almost two-thirds of Australians are inadequately insured because of their laid-back, 'she'll be right' attitude, the 2007 Axa Protection Report has found.
When Axa asked people from 11 nations about their attitudes to life's risks, Australians were the least concerned about catastrophes such as serious car accidents, grave illness and terrorism.
It also found two in three Australians were aware their level of insurance was either inadequate or non-existent.
Axa financial protection general manager Michael Rogers said financial advisers should challenge the "bulletproof syndrome".
"The message to financial advisers is: talk to your clients about their financial protection and incorporate it into your advice process," Rogers said.
The average underinsurance gap was $112,000, the research showed.
Australians are most likely to think about insurance when they buy a house or start a family.
Axa found 36 per cent of Australians were adequately insured, which was the highest rate of adequate life insurance when compared to the other 10 countries.
This is thanks to the country's advanced financial advice market and compulsory retirement saving scheme, which leads to Australians being insured through their superannuation fund.
"Our laidback culture shines though in this report," clinical psychologist John Cheetham said.
"Much about Australia's carefree attitude to life is admirable, but when it starts to affect our families and our lifestyle, it can develop into something that looks more irresponsible and financially hazardous."
While Australians are the most laid-back, people in France are the most paranoid.
Of the 11 nations, the French felt they were most likely to suffer grave illness, a serious car accident, work calamities and major financial problems.
