The Insurance in Superannuation Working Group (ISWG), established in October 2016, is openly and proactively identifying current weaknesses within the system, in order to bring group insurance to a higher standard.
The ISWG is identifying changes to improve superannuation member value and protections. Work priorities include:
- Reducing benefit erosion on superannuation account balances for members, including establishing the right level of automatic cover for young people and low income earners;
- Reducing inappropriate, multiple insurance policies;
- Providing better and more timely assistance to members during claims;
- Improving superannuation fund member communications on insurance;
- Improving data standards to improve service to members; and,
- Undertaking independent research on the costs and benefits of group insurance within superannuation
ISWG is a group comprised of Australia’s superannuation bodies, the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST), 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.
Through the ISWG, industry bodies, in consultation with consumer groups, are building a reform framework and implementation plan to ensure that group insurance in superannuation remains accessible to all Australians.
As part of the reforms, a Code of Practice will lift superannuation fund and RSE licensee obligations to meet consumer needs and expectations.
The ISWG has two tiers: a Governance Board which makes the decisions on a consensus basis, and a Technical Working Group which is responsible for developing the priorities determined by the Governance Board.