The Protecting Members Interest First (PMIF) Bill is the second round of legislation that will reportedly prevent trustees from providing insurance on an opt-out basis to members who are under 25 years old and begin to hold a new product after 1 October 2019, and to members who hold products with balances below $6,000.

The Senate economics legislation committee has already recommended that the government delay the new law’s implementation by two months to 1 December, with various super funds having also called for a delay, citing the original 1 October date as impossible to meet.

According to a statement, the effect of the new legislation will be to create an estimated $450 million gap in annual claims that will no longer be paid to members, where currently, millions of Australians do have access to insurance despite their age or wealth. 

AIA chief executive Damien Mu said the industry is already going through major changes due to the implementation of recent Protect Your Super reforms, with the full impact yet to be realised.

As the system currently stands, “the system is affordable and efficient because it provides cover to all”, he remarked.

“Of every dollar collected in group insurance premiums, 84 cents were paid back in claims to members. By comparison, insurance sold directly to consumers paid out only 41 cents on the dollar,” he continued. 

AIA said it receives more claims in regional areas relative to metro areas in NSW, Victoria and Queensland, with the insurer also paying more group insurance claims in Queensland than in any other state.

For disability claims, there is also a noticeable skew toward higher claim numbers in regional Queensland, AIA noted.

The organisation cited data from the Australian Institute of Health and Welfare Report on Australia’s Health 2018 to show that people aged 16 to 24 have the highest prevalence of mental disorders. 

This email address is being protected from spambots. You need JavaScript enabled to view it.

About the author

Cameron Micallef and Sarah Simpkins

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron Micallef and Sarah Simpkins

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Superannuation

Payday super reform hailed as transformative win for Australian workers

In a significant shift for Australia's retirement savings landscape, the introduction of the Payday Super regime on Wednesday, 1 July, marks a transformative change in how superannuation payments are ...Read more

Superannuation

Many Australians to miss out on EOFY super boost due to affordability and knowledge gaps

As the end of the financial year looms, a significant number of working Australians are poised to miss out on the chance to enhance their superannuation savings. A recent survey commissioned by global ...Read more

Superannuation

Aware Super restructures leadership as Ian Pendleton steps down

In a significant leadership reshuffle, Aware Super is bidding farewell to its long-serving Group Executive Legal and Company Secretary, Ian Pendleton, as he steps down from his executive role after 14 ...Read more

Superannuation

Half of Australians unaware of impending superannuation law change set to impact millions

In a surprising revelation, a recent study has highlighted a significant knowledge gap among Australian workers regarding a major superannuation reform set to affect over 1.2 million people from 1 ...Read more

Superannuation

Rest strengthens investment strategy with seasoned executive appointment

In a strategic move to bolster its investment strategy, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Andy Moser as the Head of CIO Office. This newly created ...Read more

Superannuation

NGS Super strengthens leadership with appointment of new Chief Member Officer

In a strategic move to bolster its member growth and experience transformation, NGS Super has appointed Adam Parsons as the new Chief Member Officer (CMO). Effective from 1 June 2026, Parsons will ...Read more

Superannuation

Aware Super triumphs at Chant West Super Fund Awards with top honours

In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more

Superannuation

NGS Super rolls out enhanced member advice services with a focus on accessibility

In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more