Insurance in Superannuation Newsletter: Sept Qtr 2016 | KPMG | AU

Insurance in Superannuation Newsletter: September Quarter 2016

Insurance in Superannuation Newsletter: Sept Qtr 2016

In this newsletter we review APRA’s latest quarterly statistics on the profitability of the superannuation insurance sector at an aggregate and a product level, as well as explore the regulators upcoming focus.

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Key insights

  • Profits for superannuation group risk products reduced significantly in the September quarter, compared to the June quarter ($29m vs $130m), due primarily to group lump sum.
  • Superannuation group lump sum profits reduced significantly from $148m in the June quarter to $15m in the September quarter.
  • Superannuation group disability income profits remain volatile, with losses in 5 out of the last 10 quarters.

* Source: APRA Quarterly Life Insurance Performance Statistics September 2016

Observations

  • ASIC recently stated it will be contacting superannuation funds to obtain information regarding their insurance arrangements, as part of their wider investigation into member engagement and effective disclosure.
  • This action follows ASIC investigations into life insurance claims handling practices.
  • Based on KPMG’s experience assisting life insurers with ASIC’s claims handling investigations we believe superannuation funds should be taking a range of actions.

Insurance in Superannuation Newsletter

Life Insurance Risk Profitability Update: September Quarter 2016

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