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Australian Ethical cuts insurance premiums
Australian Ethical Super has reduced its insurance premiums by up to 15 per cent for members.
A change of insurers, from TAL to MetLife last year, and favourable demographics had allowed the fund to negotiate a scale deal, said general manager of distribution Adam Kirk.
"Making insurance accessible, with built-in flexibility and features to suit the members' needs, was vitally important for us.
"Reducing premiums was simply icing on the cake," he said.
He said the fund's average member age was 39, which helped to bring the cost of insurance down.
"Australian Ethical has a predominantly white collar professional client base with an average age of 39, which is dropping as new younger members join.
"This makes us highly appealing to insurers," he said.
In March, the fund will begin to offer automatic acceptance on death cover and total and permanent disability (TPD) for all new members who make superannuation guarantee contributions into their accounts, he said.
Last month, Super Review reported that group insurance premiums were under pressure as the number of claims rose.
CommInsure's Claire Roberts said this was due to super funds raising automatic acceptance limits and actively engaging members on insurance.
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