Hot on the heels of TAL acquiring major industry fund Rest’s insurance mandate two weeks ago, LGIAsuper has announced the company will take over its insurance contract from 1 July, this year, bringing a seven-year partnership with OnePath to an end.
The new mandate saw TAL reassert its market dominance within the group insurance sector, with multiple funds to offer contracts to the company citing its product offering and costs to super fund members as key to their decisions.
LGIAsuper’s decision to swap insurers came after an eight-month tender process managed by SuperRatings, which chief executive Kate Farrar said was sparked by a desire to find the best possible cover for members.
“Our members are our key driver and we firmly believe the new contract with TAL will help us to deliver better coverage, more convenient services and an enhanced member experience,” Farrer said.
“For instance, LGIAsuper members will have access to new digital tools, including an insurance needs calculator, to help them understand how much cover they might need across life stages.”
Farrer didn’t think the change from OnePath to TAL would have much impact on members’ accounts in the short-term, but said that there would be “excellent opportunities” to improve its insurance offering once TAL took over the contract.
TAL Group chief executive and managing director, Brett Clark, echoed this sentiment, saying: “Life insurance through superannuation is in the spotlight, however the superannuation model provides outstanding value for members. We look forward to working with LGIAsuper to provide tailored, value for money insurance solutions and supporting their members when they need us most.”
Comments
I had an enhanced experience with Superannuation Insurance when my son died Ms Farr and it wasn't happy. Death Benefit Insurance would be better taken out, in my opinion, outside of Superannuation. I don't think you would find Real Insurance for example, determining that anyone other than the person you have nominated on your account would be paid in the event of your death. My son's Superannuation and Death Benefit was with REST and that took the experience of losing my son to a whole new level. It took 12 months and $36,000 to be given half of his total account, The other half went to a girl he knew for two years who the Trustee deemed his financial dependent even though she was receiving Centrelink. He had Muscular Dystrophy and was supported by his family and worked full time. No marriage, no engagement, no formal recognition of a relationship, no children biological or step, wanted nothing to do with his funeral just put her hand up for his money. This is not about his money. This is about a system where you put your money in and lose control of it. REST don't even pay for his funeral so if you don't have the money for that there is an added stress. This stress has taken a huge toll on his family. I will never forgive REST for their callous phone call on 22nd December, our first Christmas without our son, giving us 21 days to submit a claim and telling us we had been rejected. If the Superannuation Industry thinks this is acceptable then they have their heads in the sand. No-one I have spoken to thinks this passes the pub test. I think we will hear more about voluntary superannuation. We are not the only ones this has happened to.
That's very sad, and an appalling thing to happen, but nothing to do with insurance, and everything to do with the Trustee and the nature of the beneficiary arrangements the fund has.
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