In it’s final report, in recommendation 4.13 the Royal Commission in misconduct in the banking, superannuation and financial services industry said, “Treasury, in consultation with industry, should determine the practicability, and likely pricing effects, of legislating universal key definitions, terms and exclusions for default MySuper group life policies.”
Treasury then released a discussion paper asking those interested what they thought of this recommendation.
Chartered Accountants ANZ in summary said:
- Life insurances within superannuation funds can be highly valuable
- However there are a wide range of complexities – insurance contract terms, claims processes, trust deeds, administration processes, taxation and so on – which will remain in place even allowing for common contract terminology.
We therefore encouraged Treasury to look at the totality of insurance within the super sector with a view to simplifying many aspects.