Superannuation funds have been urged to be cognisant of the government’s new Protecting Your Super legislation and not seek to press insurers to do more for less.
The note of caution was sounded by Australian Prudential Regulation Authority (APRA) senior manager, Suzanne Johnson who said the regulator was conscious that margins were tightening in the sector and that it did not want to see margin compression similar to four years’ ago.
Speaking on a panel at the Financial Services Council (FSC) Life Insurance Conference, Johnson acknowledged the impact of the changes with respect to reducing member insurance pools.
The panel had earlier heard from Metlife’s James Carey that funds were actively working on strategies to ensure members were aware of their position and therefore actively opt in.
Carey said the situation would vary from fund to fund but he expected premiums would increase.
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