MetLife Australia has launched a national campaign to raise awareness of group insurance in an effort to help Australians understand the default insurance that comes with their superannuation.
The life insurance company said it was working with super fund trustees and asking them to join in this campaign.
MetLife chief executive, Deanne Stewart quoted the Lifewise/NATSEM Underinsurance Report from 2010 and said one in five Australian families would be affected by the death of a parent or a serious accident or illness, with that parent unable to return to work.
“We have spoken with many claimants who were not aware they had insurance until either a friend, a work colleague or a financial adviser told them,” Stewart said.
“There are also people working in high-risk occupations, such as mechanics, abattoir workers, and forestry workers who, without access to group insurance, simply would not be able to obtain affordable cover.”
Quoting Australian Prudential Regulation Authority (APRA) statistics from its Quarterly Life Insurance Performance December 2016, Stewart said insurers paid $8.6 billion in claims in 2016, relieving pressure from the social security system.
MetLife is working with the Insurance in Superannuation Working Group, which was established by the major superannuation and life insurance peak bodies to tackle the problems with group insurance in super, and develop a Code of Practice.
