Industry Code to improve consumer outcomes for insurance in superannuation

Today’s release of the Parliamentary Joint Committee Life Insurance Inquiry report (the PJC report) highlights the important role of the industry-led Insurance in Superannuation Voluntary Code of Practice (the Code) in improving standards for consumers.

ASFA CEO Dr Martin Fahy said the Code will ensure superannuation fund members receive appropriate levels of valuable life and disability insurance as well as protection from unnecessary erosion of retirement savings.

“Many of the recommendations in the PJC report are addressed by the Code,” he said.

“In some instances, the Code has higher standards in place than those proposed in the PJC report.

“The industry Code requires funds to cease cover for people at greatest risk of unnecessary erosion of their account balances.

“In addition, the Code also introduces prescribed timeframes for claims handling and processing.”

The superannuation sector is currently working to fully implement the Code.

ASFA anticipates the vast majority of superannuation members will be in funds that have adopted the Code.

To date, superannuation funds responsible for more than 70 per cent of MySuper members have already adopted the Code.

Dr Fahy said ASFA anticipates at least another 15 per cent of My Super members will be covered from the Code’s 1 July 2018 start date.

“ASFA will be closely considering other recommendations in the PJC report and looks forward to ongoing dialogue with the PJC and Government on these issues,” he said.

For further information, please contact:

Teresa Mullan, Media Manager, 0451 949 300.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.