Cbus to sign up to Insurance in Superannuation Code
29 March 2018
Cbus Super, the Industry Fund for the construction, building and allied industries has announced its intention to adopt the Insurance in Superannuation Voluntary Code of Practice.
Group Executive Brand, Advocacy, Marketing and Product Robbie Campo said the Code enables Cbus to continue to provide insurance cover to our members that meets their needs on a cost, coverage and accessibility basis, while establishing best practice guidance around expectations of group insurance provision.
“Our members work in some of the toughest and riskiest conditions of any industry which is why being able to access affordable insurance through superannuation is important and valuable to them,” Ms Campo said.
“We know that given the nature of the work our members undertake that many simply wouldn’t be able to access insurance if it wasn’t through Cbus’ group life offering.
“We believe the Code strikes the right balance between ensuring members receive adequate insurance cover while not paying unnecessary fees that eat into their retirement savings.”
Cbus already exceeds many of the standards set out in the Code as part of our continuing commitment to deliver for our members.
Cbus members have benefited from a new insurance deal that saw premiums per unit of Death & TPD insurance cover for most members go down by 25 per cent while total and permanent disablement (TPD) cover increased for the majority. Cbus’ group cover continues to offer generous definitions and coverage notwithstanding the inherently risky nature of occupational categories in which members often work.
In an industry leading move that recognised the fact that young people are less likely to have dependants or mortgages and that more super savings earlier is critical over the long term for retirement balances, default death cover for 15 – 20 year olds was also reduced.
“Cbus’ changes to cover for younger members is an example of the Fund tailoring solutions to our members’ needs – our experience is that by the time our members reach 21, they have been in the workforce for 3-4 years and often have dependents. To reflect our members’ needs and typical life circumstances we therefore define young members differently to other funds, knowing that most death claims made in relation to members over the age of 21 years are paid to their dependents,” Ms Campo said.
Cbus was a member of the Insurance in Super Working Group throughout the development of the Code and is an active and responsible industry participant ensuring we get the best deal for our members.
Over the past five years insurance claims paid through Cbus has totaled $1.1 billion. During this period the average acceptance rate for TPD claims was 88%.
Funds are required to advise the code owners of their intent to adopt the code by 31 March 2018.