Insurance in Superannuation Voluntary Code
Statewide Super has previously stated its intent to adopt the Insurance in Superannuation Voluntary Code of Practice (the Code). The code had been scheduled to come into effect on 1 January 2022.
Since the development of the Voluntary Code, the majority of the requirements in the Code have been overtaken by legislative and regulatory reforms. In addition, many of the elements of the Voluntary Code have already been implemented by Statewide Super to improve member experience.
These legislative and regulatory changes were preceded by the Insurance in Superannuation Voluntary Code of Practice developed by the superannuation industry. In development from 2016, the Code commenced on 1 July 2018, and was subscribed to by most APRA regulated superannuation funds.
The Code included provisions intended to improve standards when providing insurance to members of superannuation funds. The Code-owners were AIST, ASFA and the AIST. Many of the provisions in the Code were subsequently recommended by the Productivity Commission and the Financial Services Royal Commission, and adapted and adopted in the PYS and PMIF reforms that made big changes to insurance in super law.
In July 2021, the Code-owners replaced the Code with guidance notes on claims handling and vulnerable members. These follow extensive consultation with AIST member funds and other stakeholders, and were matters not covered by other legislation or regulations.
Statewide will consider this guidance in our interactions with members.
Note: The Code Owners are the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC).