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Retain AALs says specialist panel
Superannuation funds and insurers should seek to maintain automatic acceptance limits (AALs) albeit the criteria could be tightened.
That was the bottom line assessment of a Super Review-initiated discussion panel at the Workplace Super Specialists Association (WSSA) inaugural annual conference in Sydney yesterday during which Energy Industry Super chief executive, Alex Hutchison, said he believed that AALs were a necessary part of the insurance within super equation.
However, both he and Deloitte superannuation specialist partner, Russell Mason agreed that there was room for tightening the AALs in circumstances where they had given rise to problematic outcomes.
Further, Mason suggested it was possible for people to obtain insurance cover across multiple funds by utilising both the AALs and the privacy laws to avoid disclosure.
AON Hewitt principal, Andrea McDonnell said she also agreed that AALs were integral to the success of insurance within super.
While acknowledging the importance of claims handling in the group insurance environment, all three panellists were sceptical about the degree to which a code of conduct for life insurers could succeed in improving outcomes.
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The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
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.
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