The Insurance in Superannuation Working Group (ISWG) has proposed that superannuation funds develop an insurance data strategy and supporting framework to improve the management of insurance data.
In its fourth discussion paper, the ISWG said the challenge for super funds was to create a consolidated view of all the relevant data held on the various systems and to have oversight of the insurance processes in real time.
It said not having standards for basic transactions created inefficiency through the use of bespoke data formats of varying quality and informational levels.
ISWG said the data standard and supporting network should be developed for the transmission of data between administrators, trustees and insurers, and that the development of mechanisms to allow relevant data was to be shared – with appropriate controls – for the purpose of improving members’ retirement and insurance outcomes.
ISWG chair, Jim Minto, said improved data sharing would help members make better decisions about insurance and would help funds better determine appropriate insurance arrangements for their members.
“The wider superannuation industry is working collectively on key insurance issues that are very important for members of superannuation funds. While superannuation delivers valuable insurance benefits very efficiently and effectively there are some issues that need resolution and there is broad commitment to addressing these,” Minto said.
The paper said the benefits that could be delivered through the standards were:
- Making insurance easy to understand;
- Timely member outcomes;
- Maximising regulatory investment;
- Transparency and insights;
- Sustainable premiums;
- Symbiotic insurance ecosystem; and
- Maximising eligibility.
The working group called for submissions in respect of the data management proposal by 18 August.
