The superannuation and insurance sectors may need some Government help with putting in place measures to overcome the problems generated by members holding multiple accounts and the manner in which low-balance accounts are being depleted by insurance premiums.
The chair of the Insurance inside Superannuation Working Group (ISWG), former TAL chief executive, Jim Minto told the Financial Services Council (FSC) Leaders Summit in Sydney that all segments of the industry had combined to address the problems, but some Government help was likely to be needed.
In explaining the work of the ISWG, Minto said that he was not going to apologise for the workload being inflicted on those involved, because the structure which he hoped would be delivered needed to be “built as if it could be enforced by the Australian Securities and Investments Commission [ASIC]”.
He said he believed the industry needed to understand the importance of delivering a long-term and sustainable solution in circumstances where it was already obvious the Government would continue to focus on insurance within superannuation.
However, Minto said the ISWG process was not involved in “solving the minister’s problems but, rather, seeking to create the future”.