Trustees and superfunds need to review frameworks, policies, and governance around insurance in superannuation.
This is one of the findings from the recently-released Report 646 Insurance in Superannuation: Industry implementation of industry code of practice.
The report also called on the industry to strengthen data collection and analysis and to play an active role, along with insurance administrators, to ensure a good experience for members.
In an official statement from ASIC, the regulator highlighted that only 70 per cent superannuation trustees have adopted the code.
In their first in a series of short reports, the securities regulator highlighted that it found a ‘number of inconsistencies’ when it comes to the implementation of the voluntary code of practice with insurance in superannuation. The report specified that these inconsistencies arise when outlining:
The report also highlighted that their trustees were failing to be ‘proactive and systematic’ when dealing with more vulnerable members.
“We recognise that there is significant change occurring in relation to insurance in superannuation. In this dynamic phase, it is important that superannuation trustees remain focused and committed to improving outcomes for members,” ASIC Commissioner Danielle Press said, in an official statement that accompanied the report.