The Australian Prudential Regulation Authority (APRA) has again outlined its concerns regarding the sustainability of insurance in superannuation to life insurers and registrable super entity (RSE) licensees given the significant recent deterioration in group life insurance claims experience.
APRA said this deterioration in 2019 and 2020 had the potential for a re-emergence of unpredictability and volatility in insurance premiums.
It said if trends and practices continued, members were likely to be adversely affected by further substantial increases in insurance premiums and/or reductions in the value and quality of life insurance offered through super.
APRA said it identified the need for:
APRA deputy chair, Helen Rowell, said it was critical that the issues were addressed so sustainable and affordable insurance was available to members through their super fund over the medium to long-term.
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.
TAL has launched a digital solution TAL Connect for its superannuation fund partners that links super and insurance for members, with Aware Super as its launch partner.
The Federal Court has ruled in favour of QSuper regarding non-payment of a total and permanent disablement benefit to a member.
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