The Insurance in Superannuation Working Group (ISWG) has signalled it will be releasing a discussion paper aimed at improving consumer outcomes with respect to group insurance early this year.
The working group, involving the major industry stakeholders including the Financial Services Council (FSC), the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees and other key groups has backed the importance of default group insurance.
In a statement issued late last year the working group said group insurance in superannuation was vital in protecting those Australians who were unable to afford individual cover from unforeseen life time events.
“Group insurance in superannuation relieves pressure on the government purse, reducing the annual cost to social security by about $403 million a year,” the ISWG statement said.
The statement reinforced that the group was developing a Code of Practice for superannuation funds and insurers to better meet consumer needs and expectations.
It also noted that the group had two tiers — a governance board to make decisions on a consensus basis, and a technical working group responsible for developing the priorities determined by the governance board.
