Statewide Super Insurance Strategy
Members of Statewide Super may be eligible to be provided with a minimum level of insurance cover through their Statewide Super account. This minimum level of cover is commonly referred to as “default cover”.
Statewide Super’s insurance strategy, underpinning the insurance products and services offered to members, is designed to align with and consider the collective best interests of its members and in particular, to take into account the level of cover that is available to members compared with the cost of that cover.
Type and level of Insurance
Statewide Super offers Total and Permanent Disablement (TPD) and also Income Protection (IP) to all eligible members. Whilst TPD insurance can provide support at times of total and permanent disability, Income Protection provides a regular income of up to 75% of your salary if you are unable to work beyond 60 days – even for a temporary illness/injury.
All members meeting the eligibility criteria are provided with default cover upon joining the fund. Default insurance cover levels take into account collective underlying insurance needs and affordability. Members can also elect to increase their default cover up to the automatic acceptance limit (AAL). If a member requires a level of insurance higher than the AAL, they may apply for tailored cover which is subject to the approval of the Insurer.
Statewide Super take into account the needs of our members when formulating the design for our insurance products by considering characteristics such as:
- Age and estimated ages of associated family members
- Anticipated needs based on the ages of the member and their associated family members, including living expenses and housing costs
Our aim is to provide you with meaningful levels of default insurance cover, at an affordable cost and therefore, our overarching objective is to design our default insurance cover so that your premiums cost no more than 1% of our members’ average salaries over their lifetime to retirement.
Review of Insurance Arrangements
Statewide Super regularly monitors and reviews our insurance arrangements through the Member Services Committee (MSC). The MSC requires regular reports to be provided to it by the Insurer with the objective of enabling effective monitoring of Statewide Super’s insurance arrangements with a view that the insurance arrangements offered to members are in their best interests. Factors informing the review include insurer reports, claims experiences, regulatory or industry changes, or changes to the demographics of Statewide Super’s membership.
Statewide Super’s selection of its Insurer is informed by premiums charged, policy terms and conditions, the Insurer’s claims philosophy, overall due diligence of the Insurer and the risks and costs associated with a transition to a given Insurer. Typically, Statewide Super will perform a review of the Insurer’s suitability and the associated benefit design at least every three (3) years in order to determine whether to amend the benefit design, re-appoint or replace the Insurer. Any review must ensure that the Trustee continues to act with utmost good faith in all dealings with the insurer, as required by s13 of the Insurance Contracts Act 1984 (Cth).
Subject to the outcome of the review, Statewide Super may choose to select a new Insurer by way of a competitive tender process.
Insurance Claims Management
Statewide Super is committed to supporting our members and works with the Insurer (currently Metlife) through the claims management process. However, claims declined by the Insurer are independently assessed by the MSC in order to evaluate the appropriateness of the Insurer’s decision and the prospects of success of a claim. If the MSC finds that the member’s claim should be granted, it must do everything it considers reasonable to pursue the claim. This may include provision of further evidence to the Insurer, requesting that the Insurer reconsider the claim. In order to effectively monitor its insurance arrangements, Statewide Super will maintain accurate claims experience records for at least 5 years.
Superannuation Voluntary Code of Practice
Statewide Super are committed to adopt, in significant part, the Insurance in Superannuation Voluntary Code of Practice (the Code) and will continue to review our insurance benefit design taking into account what is in the best interests of our members. Updates will be made available to help inform and support our members as improvements and changes are made to further align Statewide Super’s insurance framework and products with the Code.