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5. Insurance in Super Working Group

The Insurance in Superannuation Working Group (ISWG) is comprised of Australia’s superannuation bodies and was formed in November 2016 to collaboratively enhance future iterations of policy development. While the current policy settings are fundamentally right, there is industry acknowledgement that changes need to be made to improve the experiences of the superannuation fund member.

Members of the ISWG include the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC).

Together, the ISWG believe that: The objective of insurance in superannuation is to provide a measure of financial support to members and their families if the member is prevented from working to retirement age by death or ill-health.

The ISWG also believe that this objective has to be balanced with the broader purpose of superannuation being the provision of retirement benefits for those that do have a full working life, recognising that insurance premiums will erode those sums to some extent.

The challenge for superannuation funds is managing these competing objectives and making sure that the balance between meeting needs and affordability is appropriately established and managed into the future.

Documents related to the ISWG are listed below. FSC members seeking further information can contact the FSC policy and research team at This email address is being protected from spambots. You need JavaScript enabled to view it..

Insurance in Superannuation Voluntary Code of Practice

The Insurance in Superannuation Voluntary Code of Practice (the Voluntary Code) comes into effect from 1 July 2018, and sets standards that will provide greater understanding, clearer accountability and consistency of delivery across the superannuation industry.

The Financial Services Council (FSC), the Australian Institute of Superannuation Trustees (AIST) and the Association of Superannuation Funds of Australia (ASFA) are the owners of the Voluntary Code and they look forward to working with their respective members to implement the Voluntary Code from next year.

The Voluntary Code improves superannuation member value and protections and is a strong step towards enhancing member interests and helping build confidence in and understanding of life insurance through superannuation.

To download the Voluntary Code click here.

September 2017

Super industry consults on draft Code of Practice to improve outcomes for members

• Click pdf here for the Consultation Paper for the Draft Insurance in Superannuation Code of Practice
• Click pdf here for the media release
• pdf Media Release: 170901 - MR Call for submissions on Insurance in Superannuation Premium Adjustment Mechanisms
  See the IWSG media statement on the call for submissions on Insurance in Superannuation Premium Adjustment Mechanisms
• pdf Discussion Paper: ISWG Discussion Paper_Premium Adjustment Mechanisms_300817_FINAL

June 2017

• pdf Media Release: Call for submissions on Insurance in Superannuation Working Group (ISWG) discussion paper
  See the ISWG media statement on the release of the first of a series of discussion papers as a first step towards extending the Life Insurance Code of Practice to superannuation trustees.
• pdf Discussion Paper: Account balance erosion due to insurance premiums
  This discussion paper is the first of several that will focus on key issues that need to be addressed by the industry. Feedback received from these discussion papers and other stakeholder consultation will inform the development of the Code of Practice and Good Practice guidance for superannuation funds.

May 2017

• pdf Media Release: ISWG third discussion paper
  The Insurance in Superannuation Working Group (ISWG) is calling for submissions on a third discussion paper that outlines options to improve member experience and understanding of insurance within superannuation.
• pdf Discussion Paper: Member communication and engagement
  The third discussion paper released by the Insurance in Superannuation Working Group (ISWG) outlines options to improve member engagement and understanding of insurance arrangements within superannuation.

April 2017

• pdf Media Release: ISWG second discussion paper
  The Insurance in Superannuation Working Group (ISWG) today released the second in a series of discussion papers as a further step towards developing a Life Insurance Code of Practice for superannuation trustees.
• pdf Discussion Paper: Claims Handling
  This paper examines existing practices and issues associated with insurance claims handling and outlines some ambitious changes in timeframes developed by superannuation and life industry representatives to improve the member experience.

Public Submissions

View all public submissions that have been received by the ISWG PMO in respect to the first discussion paper: ‘Account balance erosion due to insurance premiums'.

View all public submissions that have been received by the ISWG PMO with respect to the second discussion paper: pdf Claims handling .

View the public submissions that have been received by the ISWG PMO in respect to the third discussion paper: ' pdf Member communication and engagement .'