The Retirement Benefits Fund of Tasmania (RBF-TAS) is reviewing its insurance provision to members, currently considering an external consultants’ report which may see it cease to self-insure.
The RBF-TAS currently provides what it calls ‘ill health benefits’ and death benefits to members, backed by its own reserves and the contributions of members who elect to buy extra cover. A project manager at RBF-TAS, John De Vries, said the outsourcing of insurance would only occur if it resulted in lower premiums, lower admin costs and greater flexibility for members, at no sacrifice to any member’s current level of cover. De Vries said most members were presently on the default level of cover, and he was interested in how a third-party provider might be able to assist with education, to ensure more members were adequately insured. He described the insurance review as “;a big and complex question”; for RBF-TAS, and did not expect any final decisions to be made this year. It is understood RBF-TAS’ actuary, PricewaterhouseCoopers, prepared the insurance report which the board is to consider.
The brunt of losses from the LA wildfires are expected to be borne by primary insurers and high-risk reinsurance programs, but super funds are nevertheless closely monitoring the possible impact of the fires on catastrophe bond and insurance-linked securities exposures.
Simon HoyleJanuary 17, 2025
