The voluntary code of practice has established standards for the understanding, accountability and delivery of insurance benefits across the superannuation industry. This session discusses the developments in governance architecture and the impacts this will have on insurance offerings within superannuation.
Natalie Binns, General manager insurance solutions, REST Super
Princess Navarro, Head of insurance, Equity Trustees
Moderator: Alex Proimos, Head of institutional content, Conexus Financial
- A raft of new regulations including the government’s stapling proposal for workers to take their super with them when they change jobs is challenging the industry ahead of the code of conduct becoming enforceable for insurers on June 30, 2021.
- The new stapling rules add to a long list of rules challenging insurers to provide value.
- The voluntary code of practice has established standards for the understanding, accountability and delivery of insurance benefits across the superannuation industry with the panel discussing developments in governance and the impacts this will have on insurance offerings within superannuation.
- The onus will be on trustees to provide value for members for their insurance for the whole of life, adding complexity to an industry coping with a raft of new regulations.
- Stapling provisions have added complexity to that cover new insurance models implemented by some funds.
- Insurers and funds are navigating through PYS and PMIF legislation from productivity and royal commissions and particular attention is being paid to ASIC section 633 which is about addressing the unfair outcomes coming out of activities of daily living (ADL) and restrictive definitions such as ones like cognitive loss that’s affecting the economically vulnerable sections of the community in addition to new proposed reforms.