Featured Image

Breathing life back into disability insurance

  • On 12/09/2017
APRA statistics show the life insurance industry has lost $1.5 billion over the last four years on retail income protection policies.  This has occurred during a period of stable economic and employment conditions – conditions under which these policies ought to be profitable.  The industry has responded by ramping up premium rates by 30% or […]
Read More
Featured Image

RG97 – will fee disclosure lead to lower investment returns?

  • On 31/08/2017
Amongst the debate about whether the Australian superannuation system is competitive, everyone agrees that disclosure needs to be improved to allow members to make informed decisions about the relative merits of their fund. In theory, members should gravitate towards funds offering them better value – but they need to know enough about all the important […]
Read More
Featured Image

The shift from disengaged to ill-informed members

  • On 18/08/2017
Default superannuation has been the great success story of our industry. Since 1992, superannuation default investment options have provided Australians with healthy real returns above inflation in a tax-effective environment. This performance has been the product of high allocations by Trustees to growth assets in well diversified portfolios, with low fees arising from scale. Default […]
Read More
Featured Image

The Role of Insurance in Superannuation

  • On 09/08/2017
When industrial superannuation was built into a wide range of industrial awards 30 years ago, the initial employer contribution was 3% of wages. All funds provided life insurance and most had a flat premium for members of $1 a week, with benefits declining by age in line with the underlying increase in risks. Over the […]
Read More
Featured Image

Comprehensive Income Products for Retirement (CIPRs)

  • On 14/07/2017
Comprehensive Income Products for Retirement (CIPRs) were recommended by the Financial System Inquiry as a means of helping retirees to manage their longevity risk and to be able to draw higher pension income each year.  Treasury issued a Discussion Paper and most of the key participants in the superannuation industry have responded with submissions.  This […]
Read More