Superannuation: delivering on the promise
Industry -
At the Insurance in Super Summit last month, The Hon Stephen Jones MP addressed delegates with an overarching theme of the importance of partnership between superannuation funds, insurers and government. He touched on a number of important topics for our industry including insurance in super, member experience, data security and legislative changes.
Insurance in super
During his address, Mr Jones talked about delivering on the promise of superannuation to members by ensuring that savings accumulated throughout their working lives ultimately deliver income for a dignified retirement. As an added benefit, the superannuation system also provides affordable life insurance at scale, and currently, almost 10 million Australians rely on the default life insurance cover provided through their superannuation.
We know that for many members, particularly those in dangerous occupations, obtaining cover outside super would be out of reach. Minister Jones also highlighted that from a member perspective, superannuation and insurance within super are intrinsically linked and not seen as two separate functions. It’s an important point for us as an industry to remember, so that together we can ensure we continue to work towards a seamless member experience.
Addressing complaints
With delays in claims handling the top reason for complaints to AFCA over the past three years, Mr Jones highlighted that the impact on members cannot be underestimated. While there’s still work to be done, he acknowledged that there have been improvements made in the last year.
We know that members who are making a claim are experiencing heightened stress and anxiety. They need extra support and a straightforward process to help get their lives back on track. It’s something that we’re keenly aware of and we’ll continue to work together with you, our super fund partners, on streamlining processes to improve the claims experience of every member.
Highlighting security
Scams and cybersecurity threats are on the rise and Mr Jones highlighted that the success of the superannuation system makes it a prime target for sophisticated criminals. It’s clear that members have the same expectations of the security standards of their superannuation as they do their bank accounts. From our point of view, our cyber team remains constantly vigilant, working to mitigate risks and continuously improve data protection. Our new digital platform, TAL Connect, which is currently being rolled out, includes enhanced cyber protection and user authentication.
Legislating for better retirement outcomes
On 4 July, the Parliament passed the first round of the Australian Government’s Delivering Better Financial Outcomes (DBFO) legislative reform package, ushering in a range of reforms to the way financial advice is paid for and provided.
For members, the key outcome of the new law is confirmation they may continue to have fees for super-related financial advice deducted from their super account. While this has been common practice for some time, the changes make it clear to members that it can continue into the future. It also provides clarity to advisers and funds on the compliance processes that apply when fees for superannuation advice are deducted.
Continuing the conversation
We’re looking forward to continuing the discussion through both industry and individual engagement over the coming months. Don’t hesitate to get in touch with your Partnerships Manager if you’d like to find out more about a particular topic.