Insurance

The ten insurance principles at the heart of our insurance strategy:

1. Sustainable and competitive insurance premiums
   Our insurance should be sustainable and competitive with the costs being borne by the insured members or relevant contributing employers. We'll act through pricing and/or product design to ensure that the risk pool, and pricing, does not deteriorate to the disadvantage of members. The cost of insurance (premiums) for basic cover (also referred to as default cover) should not exceed 1% p.a. of salary over the member’s lifetime (in super) to retirement or erode the ultimate retirement balance by more than 10%.


2. Compliance with legislation
   AustralianSuper’s insurance products and services comply with obligations imposed by all relevant Acts and all subordinate legislation to those Acts (including Regulations, Determinations, Orders, Rules) and relevant mandatory Standards and Codes.


3. Fair insurance terms and conditions
   Our insurance policies are designed to give members access to their benefits when they need them most.


4. Value to members
   The insurance product should provide good value to insured members, measured by the proportion of premiums returned to members via claims payments. We’ll act through pricing and product design to minimise cross subsidies where they result in poor value for money for a particular group of members or threaten price stability.


5. Insurance cover tailored to life-stages
   The basic level of cover provided to eligible members is aimed at providing a minimum level of affordable cover across members’ life-stages which:
   • can help in providing for the basic needs of members or their dependants, and
   • follows a scale where a set amount of cover is generally provided based on the member’s age or salary.


6. Income Protection is the primary disability benefit
   Income Protection should be the primary default disability product as it can usually be assessed more readily than permanent disability and can provide support to a member in their time of need, even when the disability is less significant or temporary.


7. Member-centric claims experience
   The claims management experience is a critical moment of truth for members. Members will always be treated empathetically. We’ll support vulnerable members with additional and tailored services.


8. Focus on rehabilitation
   For those with disabilities, the primary purpose of insurance is to provide members with both financial support and assistance in returning to work. As such, the claim service and the rehabilitation service in particular represent a core offering to members.


9. Protecting all members by managing insurance risk
   Insurance risk will be passed to selected insurer/s.


10. Strong and transparent relationships
    Insurer relationships should be managed to maintain and increase capacity, reduce concentration risk, improve transparency and maintain competitive tension.