The Australian Securities and Investments Commission (ASIC) has urged the superannuation industry to focus on improving the life insurance outcomes for its members.
The ASIC’s report which was released today, ‘Insurance in superannuation: Industry implementation of the Voluntary Code of Practice’, aimed to set standards of practice to improve industry practices in benefit design, claims handling and communications to members.
According to ASIC, 70% of superannuation trustees adopted the code in whole or part however the full implementation was not due for completion until 30 June, 2021.
“We identified a number of inconsistencies in implementation of the code, some relating to fundamental aspects such as which members are covered by the code, the controls around balance erosion, and calculation of timeframes for claims processes,” ASIC’s commissioner, Danielle Press, said.
“Also, trustees are continuing to leave vulnerable members behind – they need to have better defined policies and processes for those with unique needs.”
The regulator said it would continue looking at issues relevant to consumer outcomes in relation to insurance in superannuation.
Further to that, ASIC and the Australian Prudential Regulation Authority (APRA) were working in tandem to improve consumer outcomes in insurance in superannuation, the regulator said.