Cbus’s insurance strategy
It is important that the insurance approach adopted by Cbus is not “one size fits all” and that insurance provides nominated categories of members with an easy to understand and accessible benefit through automatic default levels of cover. Members have the ability to apply for higher levels of cover at a reasonable cost that is appropriate to the individual’s circumstances, needs and employment profile. Members can also reduce or cancel their insurance cover if they have cover elsewhere or they do not require it.
As the building and construction industry is one of the highest risk industries with dangerous occupations, maintaining competitive levels of insurance cover and limiting cost increases remains one of the most challenging aspects of Cbus’s product offering.
The Cbus insurance offering is shaped by the following key strategies:
- Cost effective: Cbus is aware that the provision of insurance cover needs to be considered in the context of Cbus’s long-term strategy, which is to maximise member’s retirement outcomes. Cover must therefore be affordable and represent value for money, providing meaningful benefit levels commensurate with members’ financial circumstances, needs at different life stages as well as occupations.
- Knowing the risk: Cbus aims to provide insurance cover that takes into consideration the risk profile of the construction and building industry, ensuring members are provided with an adequate level of insurance cover which is relevant to their occupational profile and age.
- Sustainability: Cbus is committed to securing the Fund’s future state insurance offering. Cbus will review its insurance product and its terms and conditions regularly to ensure that the offering is sustainable moving forward and meaningful to our members. If we decide to change any of the insurance benefits offered (including the definition of the benefits), we will provide members with details of the changes and any options available to change or cancel the new cover.
- Accessibility on reasonable terms: Cbus knows that approximately 85% of the membership has automatic cover and therefore seeks to protect and preserve the automatic cover for Industry manual members and its straightforward eligibility requirements. Industry members in non-manual, professional or Electech occupation categories, Corporate Super members and Sole Trader members who are under age 25 or who have an account balance under $6,000 can elect to opt in for automatic insurance cover upon joining Cbus. Personal members can apply to be underwritten for insurance cover. Cbus also offers eligible members access to higher levels of cover appropriate to individual circumstances and needs.