BT pulls plug on opt-out insurance
Rob Coombe
BT Financial Group has decided not to got ahead with its planned opt-out base cover insurance for individual and corporate superannuation clients after client feedback and targeted research revealed many are still disengaged with their superannuation and unlikely to fully realise their options in such an arrangement.
BT has instead begun work on an alternative insurance option that clients can access via their super fund, BT Super, on an opt-in basis.
The company has confirmed that existing insurance agreements will remain unchanged.
Chief executive Rob Coombe said BT was concerned that high levels of disengagement with super raised serious questions about the appropriateness of opt-out insurance options within super funds. He said these arrangements are likely to result in many clients paying for cover they neither want nor need.
“[W]e must strive to ensure that our customers are fully aware of and understand any offer being made to them and that they consciously accept any change to their insurance profile.”
In Coombe’s opinion, the industry needs to do more to educate consumers about insurance and the pros and cons of accessing cover through their super fund.
“We hope this experience will highlight the insurance issue for our members and encourage those with no cover or limited cover to take action to redress any insurance gap.”
BT’s new opt-out insurance option, to be called BT Base Cover, was scheduled for release on April 1.
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