It reported that “simple reforms before the parliament would improve life insurance in superannuation”, with the draft legislation making cover “opt-in” on all new accounts for those under 25 and with balances under $6,000.
Importantly, the statement said, it would “place a greater onus on trustees to engage with and communicate the value of insurance cover to members”.
The director of Super Consumers Australia, Xavier O’Halloran, has described the sector’s lobbying as “mafia-like” and considered life insurance lobbyists as “using shock tactics to protect their profits”.
According to Super Consumers Australia, shock tactics in use include the circulation of a folder containing examples of real and tragic accidents, which has been dubbed as the “Book of Death”, to scare politicians out of enacting “sensible policy changes”.
“We remain dismayed by the reluctance of insurers and super funds to design and price products for the needs of their members,” Mr O’Halloran commented.
“We all want a system that supports people and their families who need assistance due to death or disability, but the cold, hard truth is that change is long overdue, and the life insurance sector has been dragged to this point, bitterly and petulantly.”
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