Insurance in superannuation

ASIC suggests super funds lift game on insurance, before regulator gets new powers

ASIC has suggested that super funds put more effort in to improving insurance in super, pointing out that changes next year could give the regulator the power to enforce the Insurance in Superannuation Voluntary Code of Practice. The Code was announced by a group of industry bodies, at a time… Read More »ASIC suggests super funds lift game on insurance, before regulator gets new powers

AMP acknowledges it’s slower to process super insurance claims, after questions

AMP has acknowledged it is slower than the rest of the industry in processing insurance claims in superannuation, after questions were asked by Super Consumers Australia. Xavier O’Halloran, Director of Super Consumers Australia – which is affiliated with CHOICE – wrote an open letter to David Murray, Chair of AMP,… Read More »AMP acknowledges it’s slower to process super insurance claims, after questions

“Junk” TPD insurance an industry-wide problem: ASIC

Some TPD insurance held though superannuation is “junk insurance”, says ASIC, with consumers paying full premiums but with pay outs tied to “very restrictive” definitions. A review by ASIC has found “significant industry-wide problems” with Total and Permanent Disability (TPD) insurance, including policies offered through super funds. ASIC says these… Read More »“Junk” TPD insurance an industry-wide problem: ASIC

Putting Members’ Interests First opt-in insurance changes pass Parliament

The Government’s opt-in changes to insurance in superannuation, in the Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019, have passed the Parliament. The soon-to-be Act will make insurance in superannuation opt-in for many young people and for low balance super accounts. Under the changes super funds will be prevented… Read More »Putting Members’ Interests First opt-in insurance changes pass Parliament

Communication about insurance from super funds needs to be better

Super funds need to work harder to inform their members about insurance inside superannuation, but there are benefits for the funds and members if they do. Research by MetLife research, contained in its Insurance Inside Super Report 2019, has found that super fund members “lack awareness” about insurance in super.… Read More »Communication about insurance from super funds needs to be better

Opt-in insurance in super change may be pushed back to December 2019

Making insurance in superannuation opt-in, instead of opt-out, for young people may be pushed back several months, but it is unlikely to exempt people with high-risk jobs – despite this previously being Government policy. The Government recently re-introduced to Parliament a Bill to make insurance in superannuation opt-in for young… Read More »Opt-in insurance in super change may be pushed back to December 2019

Last chance to keep insurance in super for people with inactive accounts

This is the last week for people with inactive super fund accounts to tell their funds that they wish to continue their insurance cover, several finance groups have warned. Financial Counselling Australia, the Consumer Action Law Center, and the Australian Institute of Superannuation Trustees, have warned that on 1 July… Read More »Last chance to keep insurance in super for people with inactive accounts

Over 96% of not-for-profit super fund members covered by insurance code

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.

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Lack of action on insurance eroding super is “completely unacceptable”

A Parliamentary committee has called the lack of action by super funds on erosion of super balances through duplicate insurance “completely unacceptable” and recommends the regulators immediately audit super fund trustees for payments around default insurance and expand reporting to consumers. The Parliamentary Joint Committee on Corporations and Financial Services… Read More »Lack of action on insurance eroding super is “completely unacceptable”