Media Release

Joint Media Release: Call for submissions on Insurance in Superannuation Working Group (ISWG) discussion paper

9 March 2017

Joint Media Release: Call for submissions on Insurance in Superannuation Working Group (ISWG) discussion paper

The Insurance in Superannuation Working Group (ISWG) today released the first of a series of discussion papers as a first step towards extending the Life Insurance Code of Practice to superannuation trustees.

The paper, Account balance erosion due to insurance premiums, examines how to address the issue of members paying for cover they don’t need through having multiple super accounts. A further two discussion papers are due to be published in coming weeks.

The ISWG is identifying changes that can improve superannuation member value and protections. Work priorities include:

  1. reducing benefit erosion on superannuation account balances for members, including establishing the right level of automatic cover for young people and low-income earners
  2. reducing inappropriate multiple insurance policies
  3. providing better and more timely assistance to members during claims
  4. improving superannuation fund member communications on insurance
  5. improving data standards to improve service to members
  6. undertaking independent research on the costs and benefits of group insurance within superannuation.

ISWG Chairman Jim Minto said too many people have multiple superannuation accounts and while insurance benefits are valuable to members, there is more rapid erosion of retirement savings if a person has too many insurance benefits.

“Ideally, people would consolidate their insurances and avoid this, but we must provide solutions now to address the reality of multiple, automatically provided life insurance arrangements,” he said.

The ISWG is committed to improving consumer value and experience. The paper asks for submissions from stakeholders on the proposed solutions to balance superannuation contributions allocated to saving for retirement versus automatic insurance benefits.

Industry and stakeholder feedback will help shape an enforceable Code of Practice and Good Practice Guidance for Trustees, to be published by the ISWG later this year.

How to make a submission – Submissions should be sent to ISWG-PMO@kpmg.com.au no later than 7 April 2017.

For further information please contact the Insurance in Superannuation Working Group Chair, Jim Minto via jrminto@bigpond.com.au

About the Insurance in Superannuation Working Group
The Insurance in Superannuation Working Group (ISWG) is comprised of Australia’s superannuation bodies, the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA), the Financial Services Council (FSC), Industry Funds Forum (IFF) and Industry Super Australia (ISA), who share the common belief that group insurance in superannuation is fundamentally the right policy setting for millions of Australians. This group also includes representative life insurers, superannuation funds and consumer advocates.

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

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Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.