AusSuper cuts insurance fees for members

Members of AustralianSuper will see reduced insurance costs after a review prompted the fund to cut fees by an average of 11.8 per cent.

The fund was Australia’s largest superannuation fund with over $270 billion in assets under management and said it had undertaken a review of its insurance pricing.

This covered products on offer, what they cost, claims made and paid during the previous year and economic conditions.

The fund said over 97 per cent of members who had insurance through their super account would see an average 11.8 per cent decrease in insurance costs from 27 May. 

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Rose Kerlin, AustralianSuper chief member officer, said: “For many members, insurance through AustralianSuper is better value than buying directly from an insurer.

“It’s also easier for people to pay for insurance through their super rather than their take home pay. AustralianSuper is meeting its aim of keeping default insurance costs to less than 1 per cent of members’ average salary over their lifetime to retirement.”

The claims acceptance rate for insurance through AustralianSuper was 97 per cent for the 2022 financial year with over $427 million paid to members and their families.

Over the past 10 years to December 2022, the fund paid over $4 billion across 62,600 insurance claims to help members and their families.