›Insurance in Superannuation Newsletter: Sept Qtr 2016
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.
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
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.