CommInsure has picked up a significant new insurance mandate from industry fund HESTA, with coverage from previous insurer OnePath to continue until the end of the year.
The new agreement includes a first for the industry, in that members will now be offered default income protection up to age 67. The new offering will also include improved death benefits for members.
HESTA chief executive Anne-Marie Corboy said that while negotiating the new insurance offer, the fund focused on changes that would benefit the largest concentration of members.
“Our typical member is a female in her 40s with a median balance of $9,000,” Corboy said.
“Our research tells us given her low super balance she intends to keep working as long as possible, and our new default income protection benefit will help protect her income right up to the new pension age.”
The deal closed last week and will commence in the new year, according to head of industry funds segment for CommInsure, Frank Crapis.
"This is a major win for the CommInsure team and is welcome recognition of the quality of our product and service offering,” Crapis said.
“We are particularly excited to be launching a range of new services to HESTA members when this business commences."