ASIC flags issues with group life

The Australian Securities and Investments Commission (ASIC) has confirmed it has initiated a project which will closely examine life insurance within superannuation.

The regulator has flagged that it intends on publishing a report on life insurance within superannuation “fairly soon” outlining issues it had detected in the sector.

ASIC deputy chairman, Peter Kell has told the Parliamentary Joint Committee on Corporations and Financial Services that the regulator’s examination of the group insurance space represented a flow through from ASIC’s earlier work on claims handling within both the advised and directed life insurance channels.

Related News:

“…we are also undertaking work looking at the quality of information for consumers and outcomes for consumers in the life-insurance-through-super channel,” he said. “The group channel.”

Kell said ASIC was working with the Australian Prudential Regulation Authority (APRA) on the issue, noting that “there is also a lot of work going on in the industry because there are some well-recognised problems, such as some of the ways that young people who are entering the workforce andend up paying a lot in premiums when they have relatively low super balances and so on”.




Related Content

Retirement projection calculators need to be relationship inclusive

Retirement income calculators need to take into account relationship diversity to be accurate for all couples, Rice Warner believes.In an analysis, th...more

The new kids on the block

KPMG’s Adam Gee looks at the new superannuation fund players to enter the market but questions whether their emergence represents the start of a new...more

EQT and Aon link in $5.2b super partnership

Equity Trustees (EQT) and Aon have entered into a $5.2 billion partnership which will see the merging of the Aon Master Trust and the Executive Supera...more

Author

Comments

Add new comment