Opportunities for super funds from Trowbridge
Changes to the retail life/risk market resulting from the implementation of the Trowbridge Report may provide commercial opportunities for superannuation funds, according to actuarial consultancy, Rice Warner.
In an analysis of the implications of the Trowbridge Report final recommendations, Rice Warner principal, Michael Rice, has pointed to the possibility of opportunities arising for superannuation funds in the context of their group insurance arrangements.
Rice suggests the opportunity lies in the funds making members aware of the possibility of taking up greater levels of cover within group life schemes.
Referring to manner in which changes to remuneration structures would impact life/risk advisers and the consequent adjustment period, Rice said, "the disruption that this change inevitably will cause in the retail market may create an opportunity for superannuation funds to increase member's awareness of their ability to take up greater levels of insurance through their group life schemes".
Rice's comments come against the background of industry data suggesting that only a relatively low per centage of superannuation fund members opt to upgrade their insurance beyond the default cover provided by group schemes.
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