The Association of Superannuation Funds of Australia (ASFA) and Deloitte have today released a report on the role, benefits and potential enhancements for insurance in super – The Future of Insurance in Superannuation.
The report outlines the benefits of the existing system and looks at two options for strengthening it even further through: the better use of data to target better benefits; and a greater focus on wellness and return to work.
John O’Mahony, Partner at Deloitte Access Economics said:
“Insurance in super provides clear social and economic benefits to Australian households and the broader community.
“It covers almost 10 million people. In 2021, 50,000 people and their families benefited from more than $6 billion in payouts.
“It has a very high claims acceptance rate and claims payout ratio, it is an efficient system and it extends insurance coverage.”
Dr Martin Fahy, ASFA CEO said:
“We have looked closely at how the system could be made even better.
“Giving trustees and insurers access to more and current data will allow them to better target their offering to their specific membership base.
“Allowing trustees and insurers to have a greater involvement in wellness and return to work strategies will be good for the individuals who are either able to return to work more quickly or more importantly, for those who otherwise might never have gone back to work at all.”
- Better designed policy and data access could deliver member benefits such as improvements to the mix of disability and death cover.
- A greater focus on wellness and return to work could assist almost 83,000 members return to work, boosting GDP by around $1.9 billion by 2062 and giving those people greater lifetime earnings, improved health outcomes, self-confidence and social engagement.
- Early intervention and broader access to treatment could also potentially reduce social welfare and unemployment costs by $224 million a year by 2062.
The report was developed with the assistance of a number of trustees and insurers and prepared by Deloitte.
For further information, please contact:
ASFA Media team, 0451 949 300.
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. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
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