The Insurance in Superannuation Working Group (ISWG) today released the second in a series of discussion papers as a further step towards developing a Life Insurance Code of Practice for superannuation trustees.
The paper, Claims Handling, examines existing practices and issues associated with insurance claims handling and outlines some ambitious changes in timeframes developed by superannuation and life industry representatives to improve the member experience.
When a member of a superannuation fund makes a claim, a group of key stakeholders becomes involved including the superannuation fund, its administrator if the fund has a separate one, an insurer and sometimes a reinsurer. The key issue in claims handling is how to strip away this complexity for the member and provide not only faster responses but greater clarity of timeframes, expectations and process.
Further discussion papers are due to be published in the coming month. The ISWG is identifying changes to improve superannuation member value and protections. Work priorities include:
- Reducing benefit erosion on superannuation account balances for members, including establishing the right level of automatic cover for young people and low income earners;
- Reducing inappropriate, multiple insurance policies;
- Providing better and more timely assistance to members during claims;
- Improving superannuation fund member communications on insurance;
- Improving data standards to improve service to members; and,
- Undertaking independent research on the costs and benefits of group insurance within superannuation.
ISWG Chairman Jim Minto said while the vast majority of life insurance claims were handled well, there was scope for improvement to help members when claiming. “We want claiming life insurance in superannuation to be a ‘best practice’ experience at what is a difficult time for a member or their dependants. The process needs to be member-centric, as well as simple and consistent across the industry,” Mr Minto said.
The ISWG is committed to improving consumer value and experience. The paper asks for submissions from stakeholders on the Claims Handling proposals. Industry and stakeholder feedback will help shape an enforceable Code of Practice and Good Practice Guidance for Trustees, to be published by the ISWG later this year.
How to make a submission - Submissions should be sent to ISWG-PMO@kpmg.com.au no later than 5 May 2017.
For further information please contact the Insurance in Superannuation Working Group Chair, Jim Minto via email@example.com
About the Insurance in Superannuation Working Group
The Insurance in Superannuation Working Group (ISWG) is comprised of Australia’s superannuation bodies, the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA), the Financial Services Council (FSC), Industry Funds Forum (IFF) and Industry Super Australia (ISA), who share the common belief that group insurance in superannuation is fundamentally the right policy setting for millions of Australians. This group also includes representative life insurers, superannuation funds and consumer advocates.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.