Cbus has disclosed figures showing TPD claims from members have nearly doubled in two years.
There were 798 TPD claims paid in the financial year ending 2012 totalling $45 million, while claims in the financial year ending 2014 totalled 1296 and paid out $88 million.
Cbus has set new standards for transparency in its annual report and its account of the financial year 2013-14 explains how the large rise in claims has impacted premiums.
Earlier this year the fund renegotiated its insurance contract with Hannover Life Re of Australia and maintained the same level of cover, but premiums increased from $1.95 per week per unit of death and TPD to $3.58 per week for manual, non-manual and spouse members.
Writing in the annual report David Atkin, chief executive of Cbus, said: “In the circumstances the fund achieved the best possible outcome and believes that our insurance offering is still one of the most competitive in the market based on accessibility and levels of cover for people working in the construction and building industry.”
The report goes on to reiterate the good value of the insurance offer, even at this new cost of premium.
Firstly, it points out that premiums have not risen for 15 years, but also that the pooling of members in the insurance scheme means that many in ‘high risk’ occupations would otherwise be unable to obtain affordable insurance.
The Cbus 2014 annual report is also notable for revealing the salaries of all senior staff and the trustee board.
These show that Steve Bracks, chair of Cbus, received a salary of $131,335 for the year including superannuation payments and that just over $1 million was paid to all board members in total.
The two highest paid members of full time staff are David Atkin, who received $555,000 and executive director of investments, Kristian Fok, who received $475,000.