Insurance code compliance committee flagged

29 August 2017
| By Mike |
image
image
expand image

The insurance in superannuation code of practice is likely to be overseen by a Code Compliance Committee with audit and sanction powers, according to a submission filed with the Productivity Commission (PC).

The submission filed by the Consumer Action Law Centre, Berrill & Watson Lawyers, and the Chronic Illness Alliance appears to reflect the current thinking of some members of the Insurance Inside Super Working Group (ISWG).

The submission, filed with the PC last week, has defended the value of insurance inside superannuation and the importance of the work being done by the ISWG and stated that “the insurance in superannuation code is being developed with consumer input and will, in all likelihood, be overseen by a Code Compliance Committee with audit and sanction powers”.

The submission said premium caps, account consolidation, standard definitions, and avoidance of duplicate insurance cover represented the key elements of reforms the ISWG was undertaking with particular attention being given to making it easier for fund members to vary, reduce or opt out of their default insurance.

“Some superannuation funds have been criticised for inefficient and cumbersome procedures for the variation or cancellation of insurance cover,” it said. “Streamlined and seamless electronic mechanisms to accommodate member choice is an important piece of the ISWG’s work.”

The submission said that this, taken together with enhanced member education, information sharing and a superannuation and insurance code of practice to deal with sales, claims and complaints meant the ISWG’s work represented the largest suite of reforms to insurance in superannuation ever undertaken in Australia.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 11 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 11 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 12 hours ago