We remain concerned about the removal of coverage for members who are active but with low balances – a group that do have insurance needs, with more than $75 million in claims paid by AIA to these members in 2017. We do not believe the Government should remove protection for active, working Australians, nor distinguish between active members due to age or account balance as they have similar needs.
The Productivity Commission’s recent ‘Superannuation: Assessing Efficiency and Competitiveness’ report labelled duplicate insurance but we strongly believe the Government can achieve this by mandating some of the measures outlined in the Insurance in Superannuation Working Group Voluntary Code of Practice.
We will continue to lobby Government, including our appearance at the Senate Economics Legislative Committee hearing on 20th July – and remain hopeful that sensible changes, which include extending the transition timeframe, are made to the proposed reforms. The Committee is expected to report by 13th August. and we'll keep you updated.
You can read AIA’s submission to the Committee here. For more information contact Tom Gordon firstname.lastname@example.org or speak to your Client Development Manager.