Better standards for insurance in super
Our plan for adopting the Insurance in Superannuation Voluntary Code of Practice
What’s the code and why do we need it?
The Insurance in Superannuation Voluntary Code of Practice was created to help ensure the cover you can get through your super is affordable and suits your needs.
While some funds – like Cbus – are doing well on this front, having a code will help make things more consistent and raise standards across the industry.
Super funds have until 1 January 2022 to fully comply (noting there is a transition period from 1 July 2018).
What will it mean for you?
We’re always looking to improve the cover you’re offered through your super and how insurance benefits are paid to you. That’s why we’ve been actively involved in developing the code with your best interests in mind.
The code recognises the value of insurance for members and will:
- make it easier for you to understand automatic life cover and opt out if it’s not right for you
- help you identify and cancel any insurance policies you don’t need
- simplify communications about your cover and options
- ensure timely help and faster processing if you need to make a claim.
We already meet many code requirements
We understand the needs of our members working in the building, construction and allied industries, and have built affordable insurance to suit these unique conditions. This means we already meet the overall intent of the code and many of its requirements.
And from 1 July 2018 when the code started, we’ve been working towards meeting the rest.
We’ll fully comply as soon as we can
Having worked on the code since the beginning, we’re keen to meet all requirements as soon as we can and seeing the rest of the industry do the same.
Progress to date sees that we have fully implemented approximately 70% of the Code requirements and are well advanced in simplifying and improving our claims processes, member enquiries and the way in which we provide insurance benefits to members.
In 2020 we made it easier for our members to manage and change their insurance cover to create a superior experience. We have also delivered significant improvements to our member communications.
A new insurance strategy has been published.
Below is a more detailed update on our progress against each of the Code Sections:
|Scope of the Code||Fully implemented|
|Appropriate and affordable cover||Well advanced|
|Helping members to make informed decisions||Near completion|
|Supporting vulnerable consumers||Well advanced|
|Handling claims||Near completion|
|Premium adjustments||Fully implemented|
|Promoting our insurance cover||Fully implemented|
|Changes to cover||Near completion|
|Staff and Service Providers||Well advanced|
|Making enquiries and complaints||Near completion|
Promoting, monitoring and reporting on the Code
The table above reflects where we have implemented Code requirements and does not reflect Code compliance which will be reported separately in the Annual Code Compliance report once the Code has been implemented in its entirety.
The Code requires funds to disclose their initial plans for when they would be complying with all the requirements. The dates initially reported by Cbus were:
- benefit design and premiums – June 2021
- when cover stops and restarts (automatic cessation of cover and reinstatement) – June 2021
- the rest of the code – June 2021.
Whilst we have continued to implement the Code a number of factors have impacted our timeframes – these include:
- Regulatory change, including the Protecting your Super (PYS) legislation and Putting Member’s Interest First (PMIF) package.
- The Code has been updated three times in the last 12 months modifying certain requirements and will likely require further modification in the short term due to legislation arising from the Hayne Royal Commission and changes to regulatory requirements.
The Code-owners decided to delay the final implementation date by six months to 1 January 2022 recognising the range and nature of recent and imminent legislative and regulatory changes to insurance in superannuation.
It is now our intention to formally opt-into the Code on 1 January 2022 consistent with the Code operative date.
While you don’t need to do anything, it’s important to remember that you can apply to increase, reduce or cancel your insurance cover at any time. If you need some help choosing the best cover for you, call our Advice Team on 1300 361 784.
We’ll continue our work to fully adopt the code and report on how we meet its standards before it takes effect.