By: Claire Machin
The Stronger Super reforms announced in September 2011 aimed to
raise the role and importance of insurance in superannuation with a
range of significant changes to prudential regulation governing
superannuation trustees1. These changes included the
introduction of an insurance management framework, MySuper default
insurance, and restrictions on the types of insurance in
superannuation.
This article explores some of the changes to group insurance
brought about by the Stronger Super reforms.
MYSUPER
Default superannuation funds must now provide a minimum level of
life and TPD insurance on an opt out basis. It is fair to say that
while the levels of basic life and TPD cover are low and are not
likely to provide an adequate level of cover for many people, more
people will now have basic TPD cover. Conversely, as the auto
consolidation of inactive superannuation accounts gains momentum,
many people will lose their cover associated with an
