Explore the potential impact of the pandemic recession on underinsurance in Australia through this 43-minute colloquium. Examine Melbourne Institute research findings on household spending patterns during financial stress, focusing on reduced expenditure on health and house insurance. Analyze the implications of this data for Australians whose work has been negatively affected by the pandemic. Delve into topics such as insurance spending, stressed vs. non-stressed households, fixed payments, and household responsiveness to financial stress. Consider whether reducing insurance coverage is a rational response to economic hardship, and discuss related issues like the US public option, moral hazard, and the broader implications of financial stress on insurance decisions.