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

Restore LRBA ban says ASFA

The Federal Government should use the May Budget to restore the general prohibition on direct borrowing by superannuation funds, according to the Asso...more

Australia’s super system a world leader

The compulsory nature of Australia’s superannuation guarantee regime helped ensure Australian pension assets grew faster over the last 20 years than...more

Govt needs to properly fund SCT wind-down

The Federal Government needs to ensure adequate funding for the Superannuation Complaints Tribunal (SCT) until such time as the new Australian Financi...more



Add new comment