In a bid to promote the virtues of personal insurance Axa Australia has compared the chances of needing insurance cover with a punt on the 'Lotto', leading to the conclusion that Australians would be better served if they put their money into insurance.

Derek Hogg, Axa Australia’s head of insurance, states that Australians have a one in 8 million chance of winning the Lotto, while the odds of needing personal insurance to cover life’s unexpected issues are much shorter.

Just look at the odds – one in two Australians over 30 will be diagnosed with a serious illness or suffering injury. In addition, one in two men will develop coronary artery disease and one in four women will be diagnosed with cancer.

And yet, Australians seem happy to spend their money on Lotto, Mr Hogg suggests.

Axa’s new strategy comes as it attempts to tackle what it sees as Australians’ cultural tendency to rank personal insurance, particularly life and income insurance, as a low priority.

Axa’s research suggests the average level of life underinsurance is A$468,000 per person. To rectify this Australians’ need A$574.25 worth of annual cover, which equates to A$11.04 a week – roughly the cost of a weekly Lotto ticket.