Over 96% of members of not-for-profit super fund members are covered by the Insurance in Super Code of Practice, according to the Australian Institute of Superannuation Trustees (AIST).
AIST CEO Eva Scheerlinck said the overwhelming support for the Code by the profit-to-member sector, AIST’s preferred term for not-for-profit funds, would lead to improvements for millions of super fund members – such as faster and better claims handling.
“The industry’s commitment to the Insurance Code will result in superior member outcomes,” Ms Scheerlinck said.
“These reforms are very significant and touch on every aspect of the insurance offering.”
It is unclear from AIST’s statement the status of the remaining 4% of members, though the Code is voluntary.
The Code is a product of the Insurance in Superannuation Working Group (IPSW), which formed at a time when insurance in superannuation was coming under scrutiny from the government. When the Code was released in December 2017 it was criticised as not going far enough by both the government and consumer groups.
Ms Scheerlinck said the Code was broader and more comprehensive than the “one size fits all” approach of the Government in its Protecting Your Super Bill, currently before the Parliament.
AIST is calling on the Government to amend its Bill, to align it with the Code.
“This would provide certainty for members and funds and the smooth implementation of higher standards,” said Ms Scheerlinck.
AIST said that “most” of its member funds signed up to the code plan to fully comply by the Code’s official deadline.