Enforceable code needed for insurance in super

A voluntary code of conduct is not good enough for insurance within superannuation, according to the Australian Lawyers Alliance (ALA).

The ALA has called for an enforceable Code of Practice to regulate the conduct of both the insurance and superannuation industries, overseen by the Australian Securities and Investments Commission (ASIC).

In its submission to the Senate Economics Committee inquiry into consumer protection in the banking, insurance and financial sector the ALA said the many examples of poor claims handling had eroded public confidence in the insurance industry “such that a self-regulated code would be insufficient, and would represent a wasted opportunity to effect genuine change”.

Related News:

It said the proposed code should ensure that the insurance and superannuation industries operated in an ethical and fair manner.

“It should be developed through an open and transparent process, involving genuine consultation with both community representatives and industry groups,” it said.

The ALA argued that ASIC was the appropriate regulator, adding that it was essential that “ASIC’s resources are sufficient to ensure it is capable of providing genuine and effective oversight”.

“At a minimum, ASIC supervision should cover total and permanent disability insurance, income protection, terminal illness, death and trauma claims,” it said.




Related Content

New CEO for AMIST

Meat industry fund, AMIST Super will have a new chief executive, with the board having decided to elevate Murray Rutherford to the role.Super Review h...more

Ten per cent of super members plan to swap fund

A survey of over 6,000 superannuation fund members has found that approximately 10 per cent of members intend to swap fund in the next 12 months, a re...more

Fintech may impact super value chain

The superannuation value chain may experience a wave of change wrought by the impacts of fintech, according to a recent Bravura Solutions report.The F...more

Author

Comments

Add new comment