POWERED BY MOMENTUM MEDIA
ClearView calls for all insurance to be opt-in
ClearView has welcomed new measures announced in last night’s Federal Budget that would make life insurance opt-in only for superannuation members under 25 years old, with managing director, Simon Swanson, calling for the policy to be extended to all members across the board.
Swanson said the new policy meant that young workers would no longer be “forced” to hold “costly life insurance that they often did not need and could not afford or claim on”.
He said that making group insurance an opt-in product for all workers would “result in a substantial improvement in understanding what cover they have and don’t have and stop the excessive erosion of their savings by fees and premiums”.
ClearView said that an opt-in system would result in Australians investing in insurance that actually covered their needs, saying that currently “too many … only have a fraction of the cover they need”.
“While some, such as young people, end up with cover they don’t need, there are many other workers with significant needs who falsely believe they’re adequately covered when they are not,” Swanson said.
“If the goal of group insurance is to protect and maximise value for members, this is a highly inefficient system. It hinders optimal behaviour by discouraging members to properly assess their needs and regularly reviewing their arrangements.”
The company said that this, and other Budget super changes, “represent sensible public policy and highlight the need for an overhaul of current group life arrangements”.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
32.16 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
