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

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 …

Only 2-10% would take up opt-in insurance in superannuation

If insurance in superannuation was switched to an opt-in system, instead of the current out-out, only 2-10 % of people would take up insurance, potentially leaving four to five million Australians unable to obtain any insurance or insurance at reasonable …

Some super funds treating members as smokers by default for insurance

ASIC is concerned by the some of the poor disclosure around insurance in superannuation, including the practice by some funds of deeming members to be smokers by default for insurance purposes.

The regulator said there were “some areas for improvement,

Insurance in multiple super accounts can lead to “rapid erosion” of balances

Too much insurance across multiple superannuation accounts can result in “rapid erosion” of super balances, says the Insurance in Superannuation Working Group (ISWG) which is working on ways to address the issue.

ISWG Chairman Jim Minto said too many people