PJC report highlights importance of Insurance in Super code

parliamentary joint committee report ASFA code superanuation

28 March 2018
| By Hannah Wootton |
image
image
expand image

The Parliamentary Joint Committee (PJC) Life Insurance Inquiry report, released yesterday, reinforces the importance of the Insurance in Superannuation Voluntary Code of Practice, according to the Association of Superannuation Funds of Australia (ASFA).

The Association said that the report highlighted the role of the Code in improving standards for consumers.

ASFA chief executive, Martin Fahy, said that the Code would ensure that super fund members received appropriate levels of life and disability insurance. It would also protect them from the unnecessary loss of retirement savings.

“The industry Code requires funds to cease cover for people at greatest risk of unnecessary erosion of their account balances. It [also] requires funds to cease cover for people at greatest risk of unnecessary erosion of their account balances,” Fahy said.

He said that in some instances, the Code actually imposed higher standards than those proposed in the PJC report.

ASFA anticipated that most super members would be protected by the Code, with super funds responsible for more than 70 per cent of MySuper members having already adopted it.

It predicted that a further 15 per cent of MySuper members would be covered by the Code’s 1 July, 2018 start date.

Fahy said that the Association would look further into the report’s recommendations beyond those related to the Code.

“ASFA will be closely considering other recommendations in the PJC report and looks forward to ongoing dialogue with the PJC and Government on these issues.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 3 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 months ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

2 weeks 2 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

1 week 2 days ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

1 week ago

TOP PERFORMING FUNDS