AIA Australia has won the HESTA life insurance tender, beating seven-year incumbent CommInsure.

HESTA’s annual report for last year shows the industry superannuation fund had 827,000 members and CommInsure was paid $241 million in premium.

Group life claims for the fund last year totalled $69 million.

CEO Debby Blakey says the fund conducted an extensive review of members’ insurance needs, the competitive landscape and insurance trends.

“We selected AIA based on a broad range of criteria, including financial strength, sustainable pricing, comprehensive rehabilitation support programs and capabilities to enhance our member experiences through digital technology,” she said.

AIA will take over the contract next year.

Ms Blakey says HESTA will work closely with both insurers to ensure members receive all entitlements under the relevant insurance policy when claiming.