Industry bodies representing the group superannuation sector, including the FSC, have released guidance to their members on how to collect group insurance data claiming it would improve the pricing and sustainability of the group life market.
The guidance document was released by the Financial Services Council, Industry Super Australia, Industry Funds Forum and Australian Institute of Superannuation Trustees which stated better reporting would also increase regulator confidence in the industry.
A joint statement released by the four groups said the guidance note worked in conjunction with existing Australian Prudential Regulatory Authority standards around the insurance management, design and data management within superannuation but provided detail on what data should be captured, extracted, reported and stored by superannuation funds and insurers.
The guidance note stated its use should “…improve the quality and availability of group insurance data for use in the tendering process, renewal pricing and ongoing reserving and…to maintain and design an insurance offering”.
The note also indicated that best practice may not have been adhered to by stating it would “…address the lack of best practice with respect to capturing, extracting, reporting, and storing Claims Data and Member Exposure Data” noting this had created risks for trustees and insurers in providing insurance benefits.
