AustralianSuper and its insurer TAL have agreed to adjust its insurance premiums following its annual insurance review, amending work-cover ratings and allowing some members to pay lower premiums.
The changes will allow nearly half of the 2.2 million AustralianSuper members to pay lower premiums. However, from May 29, 2021, industry division members' average insurance costs will increase by 3.2% and public sector members by 0.4%.
Work ratings and pricing will also change from May 29. Standard work rating will be known as Blue Collar and Low Risk as White Collar. Meanwhile, the Professional work rating will not change, according to Financial Standard.
“In uncertain times, insurance plays a very important role in many people's lives. AustralianSuper provides insurance to members at cost and despite the uncertainty related to COVID-19 premiums are remaining fairly stable,” said Sarah Adams, the AustralianSuper group executive of strategy, brand, and reputation, as reported by Financial Standard.
AustralianSuper paid out over $470 million across 9,900 claims in the year ended June 2020 to members and their families, with a 96.5% acceptance rate. It explained that it does not impose pandemic-related exclusions to group insurance cover, and normal terms and conditions and waiting periods apply.
“AustralianSuper members with active cover are covered for death, TPD, and income protection claims resulting from COVID-19,” Adams said. “As a result of this year's review, AustralianSuper continues to meet its aim of keeping insurance costs to less than 1% of salary on average.”
