On 7 September, ASIC released a review on the provision of insurance cover through superannuation in Report 591 Insurance in superannuation (Report).
ASIC states that the findings of concern in the Report included the following:
- poor complaints-handling timeframes and practices, as almost a third of trustees in the review took more than 90 days on average to resolve complaints about insurance in 2017-2018; and
- some trustees were still automatically defaulting members as ‘smokers’ when transferring them to different sections of the same fund, resulting in higher insurance premiums payable by those members. All trustees have agreed to discontinue this practice.