The $16 billion HESTA is understood to be in the advanced stages of tendering its group risk contract, currently managed by OnePath.

I&T News understands the big industry fund issued tender documents in March and asked for first responses to be provided before Easter.

This short timeframe indicated the purpose of the tender was to gain more competitive pricing for the current insurance cover provided by OnePath.

HESTA’s default insurance, costing $3 each week, currently provides up to $170,000 in death cover until age 70, and income protection of $850 each month until age 60.

It is understood the tender is being run by Alex Dunnin, director of research at Rainmaker.

HESTA declined to comment on the tender.