POWERED BY MOMENTUM MEDIA
APRA warns on group margin compression
Superannuation funds have been urged to be cognisant of the Government’s new Protecting Your Super legislation and not seek to press insurers to do more for less.
The note of caution was sounded by Australian Prudential Regulation Authority (APRA) senior manager, Suzanne Johnson, who said the regulator was conscious that margins were tightening in the sector and that it did not want to see margin compression similar to four years ago.
Speaking on a panel at the Financial Services Council (FSC) Life Insurance Conference, Johnson acknowledged the impact of the changes with respect to reducing member insurance pools.
The panel had earlier heard from Metlife’s James Carey that funds were actively working on strategies to ensure members were aware of their position and therefore actively opting in.
Carey said the situation would vary from fund to fund but that he expected premiums would increase.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
