Insurance in Superannuation Voluntary Code of Practice

Insurance in Superannuation Voluntary Code of Practice

The Insurance in Superannuation Voluntary Code of Practice is being implemented by superannuation funds, including AIST member funds.

AIST, ASFA and the FSC are now the Insurance in Superannuation Code-Owners and have been responsible for the development of the Code since December 2017. We have superseded the Insurance in Superannuation Working Group.

Funds that have adopted the Code were required to publish their transition plan for implementing the Code on their website by 31 December 2018. The overwhelming majority of AIST members have done this and a link to these plans is available below.

An implementation committee of super funds, insurers, administrators and code owners (including AIST) is facilitating implementation, assisting trustees in interpreting and meeting their commitments under the Code, and addressing practical matters of Code compliance and interpretation. Trustee, insurer, administrator and industry association representatives comprise the committee. The committee has also started investigating options for industry standardisation of key terms. This committee replaced the transition committee from January 2019. 

Guidance for adopting the code has been developed by transition committee and issued by the code-owners.

A second Code guidance document has been developed by ASFA, AIST and FSC in consultation with the Code transition committee. The document provides a framework for trustees to develop their transition plan for implementing the Code. 

A template has been prepared to assist funds clearly identify each of the code requirements and support the detailed tasks that may be required for implementation. Thanks to HESTA for preparing this and making it available to AIST member funds.

The Code promotes better data standards and improved transparency arrangements to help members make informed decisions and to compare insurance offerings.

A Key Fact Sheet (KFS) has been developed in a standard format for funds to use. Various funds are now using the Key Fact Sheet.

The Key Fact Sheet is customised to reflect the automatic insurance cover your fund offers. The attached Information Cover Sheet for Trustees provides important instructions to assist you with this.

AIST is actively promoting the Code to our members, to consumers and to other industry participants to lift standards and improve consumer protections. We are continuing to provide assistance to member funds about transition planning, implementation and the operation of the Code. 

For further information about the Code, please contact AIST Senior Policy Manager David Haynes at dhaynes@aist.asn.au 

Background material about the Insurance in Superannuation Working Group can be accessed on the ISWG page.