Insurance, as a means for spreading risk, brings signficant benefits for both individuals and for communities.[1] But some changes should be made to bring the regulation of insurance into line with that of other financial [1] Background Paper No 14, Read More …
Category: Insurance
5.4 Statistically appropriate rates
Default arrangements are those arrangements between an employer and a trustee of a superannuation fund under which the employer agrees to direct contributions paid on behalf of those employees – who make no election about where the employer is to Read More …
5.3 Associated entities
5.3.1 Trustee obligations for insurance Trustees of superannuation funds are currently subject to certain obligations under the SIS Act and the Prudential Standards relevant to insurance. For example, the trustee of a superannuation fund covenants to do the following things Read More …
5.2 MySuper
Section 68AA of the Superannuation Industry (Supervision) Act 1993 (Cth) (the SIS Act) requires each trustee[1] authorised to offer a MySuper product to provide MySuper members with a permanent incapacity benefit and a death benefit by way of life insurance.[2] Read More …
5.1 The structure of group life insurance
Group life insurance involves a policy owner – commonly an employer or superannuation trustee – holding a policy on behalf of a defined group of individuals. Under an employer group scheme, an employee’s life is insured. The employer is the Read More …
5 Group life insurance
As I explained in the introduction to this chapter, an important feature of the life insurance market is that life cover, total and permanent disability cover, income protection cover and trauma cover are available not only through individual policies but Read More …
4.7 Accountability
As I explain in the chapter relating to the regulators, I consider that provisions modelled on the Banking Executive Accountability Regime (BEAR) should be expanded to all APRA-regulated financial services institutions. I also explain in that chapter why I consider Read More …
4.6 External dispute resolution
A number of case studies examined in the sixth round of hearings involved problematic dealings between an insurer and the EDR body: previously FOS, now AFCA (the Australian Financial Complaints Authority). These included the CommInsure, TAL and AAI (Hunter Valley Read More …
4.5 Status of Industry Codes
As I explained in the Introduction to this Report and in the chapter on banking, I consider it important that some provisions of industry codes be picked up and applied as law, so that breaches of those provisions will constitute Read More …
4.4 Claims handling
The handling and settlement of insurance claims, or potential insurance claims, is now carved out from the definition of ‘financial service’ by regulation 7.1.33 of the Corporations Regulations.[1] As a result, some of the general obligations set out in section Read More …