The Insurance in Superannuation Working Group (ISWG) has released its third discussion paper, this one on making insurance in superannuation easier to understand.
The discussion paper, Member communication and engagement, “outlines options to improve member engagement and understanding of their insurance arrangements within superannuation,” said Industry Super Australia, a member of the ISWG.
“Some practical options are proposed to help bring these aspirations to life including use of standardised consumer language and terms across the industry. Multiple terms and descriptions today are confusing.”
“When a member of a superannuation fund first enters a fund, it is important to provide them with simpler and clearer information. In addition, consideration is being given to using a Key Facts Sheet to convey the essence of the life insurance arrangements and help inform members’ choices and decisions.”
Another proposal in the discussion paper is an ‘Insurance Welcome Pack’, which would be used by all super fund that automatically provide insurance to members.
ISWG Chairman Jim Minto said: “We are considering proposals here that are absolutely unique for the superannuation industry and will help consumer understanding and engagement.”
“These proposals will help very valuable life insurance cover to be better understood by members who can in turn make better choices and decisions about their life insurance and superannuation.”
More discussion papers will be published in coming months as the ISWG develops a Life Insurance Code of Practice for superannuation trustees.
Details on how to make a submission in response to the discussion paper can be found here.