Insurance Super Working Group welcome in driving better standards for consumers

3 November 2016
The announcement of an Insurance in Superannuation Industry Working Group to drive improvement and better standards in the insurance and superannuation industries has been welcomed by Maurice Blackburn Lawyers.

Maurice Blackburn Principal Kim Shaw said the announcement of such a group, set to consist of the Australian Institute of Superannuation Trustees (AIST), Industry Super Australia (ISA), the Financial Services Council (FSC), the Association of Super Funds of Australia (ASFA) and the Industry Funds Forum (IFF), was a key step in helping to drive a better process in reforming the industry for consumers.

“Unfortunately to date any measures on reform have largely been toothless and driven by self-interest, rather than what is best for consumers,” Ms Shaw said.

“We have also been very concerned at measures being announced and introduced in an ad hoc way, with no certainty or commitment to genuinely drive reform in the broader industry.

“What has been announced this week we hope will be a clearer process to begin developing and implementing real reforms and a higher standard for the industry going forward.

“We have consistently called for an enforceable Code of Conduct for many months now and it is pleasing to see that the industry peak bodies are now also catching up to this, with the Working Group committing to the finalisation of a code by the end of 2017.

“Our hope with this new group is that there will be genuine consultation right across the industry on a binding Code for claims and dispute handling, something that has been lacking to date.

“In particular we want to see the end of crippling delays for consumers waiting for decisions to be made and a rigorous standard for all participants, including lawyers, funds and insurers.

“We look forward to working with the Working Group to deliver real and lasting reform in the superannuation and insurance industry,” she said.