The Corporate Super Specialist Alliance (CSSA) is calling on the Government to consider allowing advisers providing insurance services to employer groups to charge an insurance service fee.
The request is included in the CSSA’s submission to the Government in response to the MySuper draft legislation, which sets out the fees and charges that are permissible within the simplified super product.
Under the proposed rules, no commissions can be paid on group insurance within a superannuation product. CSSA President, Douglas Latto, says that while it is inappropriate for commissions to be included in a premium when no service is being provided, corporate super specialists still need to be effectively remunerated for their services.
Corporate super specialists still need to be effectively remunerated for their services
“Corporate super specialists currently provide a range of highly valued insurance services to members of corporate super funds, including things like negotiating reduced premiums and better features, ensuring members are not subject to automatic acceptance levels and helping them navigate the maze of paperwork that accompanies claims,” said Mr Latto.
“We suggest that an explicit insurance service fee, which defaults to zero, be charged to all members at an agreed percentage with the consent of the employer,” he said. “This is specifically relevant when a tailored default insurance strategy is selected by an employer – rather than the standard default strategy.”
Mr Latto said the insurance service fee could operate within group insurance in the same way that asset-based fees operate within investment and superannuation. “This should ensure that only those receiving insurance services are paying the fee,” he said.
