The new Life Insurance Code of Practice released today by the Financial Services Council (FSC) will not alter the member-facing role of superannuation funds.
Detailing the working of the code, FSC chief executive, Sally Loane said the code would place obligations on life insurers providing group insurance through superannuation funds but that trustee would be maintaining their member-facing role.
She said the FSC was committed to working collaboratively with the superannuation industry to deliver end-to-end commitment to the insurance experience for superannuation members and that discussion with the superannuation industry around the code would be ongoing.
In doing so, Loane referenced last week’s Statement of Intent developed with the other major superannuation organisations around the importance of group insurance and lifting standards.
“Most Australians receive their life insurance in their group, or workplace superannuation fund,” she said.
“The Life Insurance Code covers the obligations of life insurance companies to consumers in group super funds, but it cannot impose obligations on trustees of super funds because not all super funds are FSC members.”
However, she said the FSC was encouraged by the commitment by the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST), Industry Super Australia (ISA), and Industry Funds Forum (IFF) to working with the FSC to ensure obligations in group insurance would be broadened.
In releasing the Code of Practice today, Loane reinforced that it would be governed by an independent body to ensure compliance.
