The first AIA Australia group insurance summit is taking place in Sydney today, with CEO Peter Crewe calling for closer partnerships between insurers and superannuation funds as the industry navigates a challenging regulatory environment.

“The challenges facing the industry over the next few years will be some of the biggest we’ve had to contend with, but they could also see Australia taking a lead position in the global life market,” Mr Crewe said.

He says time and resources will be critical in preparing super funds for the MySuper reforms from July 1 next year.

“There is a huge amount of work involved for super funds in getting their offerings ready for the proposed deadlines across investment, administration and insurance,” he said. “The less time funds have to get these systems up and running, the more resources it’s going to take.”

Mr Crewe says the separation between group and retail insurance has blurred during the past few years and this will affect how super funds package benefits in the future.

“Group insurance used to be distinguished from retail offerings as a lower cost but simplified product. However, greater alignment has occurred between funds and advice practices and together with funds’ own member retention campaigns, group insurance is becoming more sophisticated.”