The Insurance in Superannuation Working Group (ISWG) is comprised of Australia’s superannuation bodies and was formed in November 2016 to collaboratively enhance future iterations of policy development. While the current policy settings are fundamentally right, there is industry acknowledgment that changes need to be made to improve the experiences of superannuation fund member.
Members of the ISWG include the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC).
Together, the ISWG believe that: The objective of insurance in superannuation is to provide a measure of financial support to members and their families if the member is prevented from working to retirement age by death or ill-health.
The ISWG also believe that this objective has to be balanced with the broader purpose of superannuation being the provision of retirement benefits for those that do have a full working life, recognising that insurance premiums will erode those sums to some extent.
The challenge for superannuation funds is managing these competing objectives and making sure that the balance between meeting needs and affordability is appropriately established and managed into the future.
Documents related to the ISWG are listed below. FSC members seeking further information can contact the FSC policy and research team at firstname.lastname@example.org.
Insurance in Superannuation Voluntary Code of Practice
The Insurance in Superannuation Voluntary Code of Practice (the Voluntary Code) comes into effect from 1 July 2018, and sets standards that will provide greater understanding, clearer accountability and consistency of delivery across the superannuation industry.
The Financial Services Council (FSC), the Australian Institute of Superannuation Trustees (AIST) and the Association of Superannuation Funds of Australia (ASFA) are the owners of the Voluntary Code and they look forward to working with their respective members to implement the Voluntary Code from next year.
The Voluntary Code improves superannuation member value and protections and is a strong step towards enhancing member interests and helping build confidence in and understanding of life insurance through superannuation.
To download the Voluntary Code click here.
Super industry consults on draft Code of Practice to improve outcomes for members
- Click here for the Consultation Paper for the Draft Insurance in Superannuation Code of Practice
- Click here for the media release
See the IWSG media statement on the call for submissions on Insurance in Superannuation Premium Adjustment Mechanisms
- Media Release: ISWG third discussion paper
The Insurance in Superannuation Working Group (ISWG) is calling for submissions on a third discussion paper that outlines options to improve member experience and understanding of insurance within superannuation.
- Discussion Paper: Member communication and engagement
The third discussion paper released by the Insurance in Superannuation Working Group (ISWG) outlines options to improve member engagement and understanding of insurance arrangements within superannuation.
- Media Release: ISWG second discussion paper
The Insurance in Superannuation Working Group (ISWG) today released the second in a series of discussion papers as a further step towards developing a Life Insurance Code of Practice for superannuation trustees.
- Discussion Paper: Claims Handling
This paper examines existing practices and issues associated with insurance claims handling and outlines some ambitious changes in timeframes developed by superannuation and life industry representatives to improve the member experience.
View all public submissions that have been received by the ISWG PMO in respect to the first discussion paper: ‘Account balance erosion due to insurance premiums'.
View all public submissions that have been received by the ISWG PMO in respect to the second discussion paper: 'Claims handling'.
View all public submissions that have been received by the ISWG PMO in respect to the third discussion paper: 'Member communication and engagement.'