Regulators urge action over talk
The time for talk is done and the time for action has arrived with respect to insurance within superannuation, according to Australian Prudential Regulation Authority (APRA) deputy chairperson, Helen Rowell.
Addressing the Association of Superannuation Funds of Australia (ASFA) conference on the Gold Coast, Rowell welcomed the formation of the superannuation industry's insurance working group as a means of the superannuation taking control of its own issues in respect to insurance, rather than being pushed by the regulator.
Rowell warned that there was a real danger of significant reputational damage to both the insurance and superannuation industries if they did not get on the front foot.
Australian Securities and Investments Commission (ASIC) commissioner, Greg Tanzer also pointed out to conference delegates that the corporate regulator was also closely monitoring insurance within superannuation and said there was a need to look to protect their most vulnerable member segments, particularly those in defaults.
Tanzer expressed particular concern about uninformed members being defaulted into a ‘smoker' designation when they clearly were not.
"We are concerned about members being moved from an employer to a private division and being designated as a smoker by default," he said.
"That is not appropriate."
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